Define supply and demand

Answer 1

Supply and Demand is an economic model that describes how prices of commodities in an open competitive market naturally gravitate toward an equilibrium between the available supply for a commodity and the demand for that same commodity at any given time. In this model, supply is defined as the willingness of a producer to sell a commodity at a given price and terms, and demand is the willingness of a consumer to purchase that commodity at a given price and terms.

In principle, as supply increases, more of the commodity becomes available to consumers, and therefore the consumers have greater access to a wider range of sources of the commodity. In this circumstance, the commodity price falls. The commodity price can also fall when demand for that commodity weakens, forcing producers to "sweeten the deal" in order to attract buyers.

As supply decreases, price increases, because there is less of the commodity available on the market, and consumers must compete more aggressively with each other to purchase the same commodity. Price can also increase when demand increases, also creating increased competition for the commodity.

The supply and demand model seeks to identify and predict intersections between supply and demand curves, and thereby evaluate the current fair price for commodities, and to anticipate changes of the commodity prices.

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Answer 2

an economic idea that the value of something is determined by how much of it exists in relation to how much consumers want it -APEX

Answer 3

Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers (at current price) will equal the quantity supplied by producers (at current price), resulting in an economic equilibrium of price and quantity.

The four basic laws of supply and demand are:[1]

1. If demand increases and supply remains unchanged, then it leads to higher equilibrium price and quantity.
2. If demand decreases and supply remains unchanged, then it leads to lower equilibrium price and quantity.
3. If supply increases and demand remains unchanged, then it leads to lower equilibrium price and higher quantity.
4. If supply decreases and demand remains unchanged, then it leads to higher price and lower quantity.

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Demand refers to how much (quantity) of a product or service is desired by buyers. Supply represents how much the market can offer

Answer 4

The relationship is an inverse one. When demand increases, supply decreases. When supply decreases, demand increases etc. You can see the graph here

http://www.mikeonads.com/wp-content/uploads/2007/05/supply_demand_11.JPG

The supply line has a positive slope and the demand line has a negative one.

Answer 5

When economists refer to 'the law of supply and demand' they are referencing an economic model that describes how products and/or services with go up or down in cost depending on two factors: the amount of goods/services available (too few = shortage, too many = surplus), and the degree to which consumers want ('demand') the product/service. So, for instance, if there are lots of consumers who want a product, but not many products on the market, a shortage occurs and prices go up. Conversely, if there is a lot of product available but little consumer demand, prices go down.

Answer 6

Supply is stock and demand is what the people want and need to have.

Answer 7

ability to pay & willing to buy.

Answer 8

Availablity versus demand