Explain economics relating to law of supply and demand?

Answer 1

The Law of Supply is a rule stating that more will be offered for sale at high prices than at lower prices. The Law of Demand is a rule stating that more will be demanded at lower prices and and less at higher prices.

The Law of Demand states that there is inverse relation between the demand of the consumer and prices whenever the prices of the commodity increase the the demand for that commodity decrease that so why it is inverse relation between the demand and price of the given commodity.

(addition by matchman6)

This is correct - however the questions asks, explaineconomics relating to supply and demand.

I would say you cant explain economics relating to supply and demand, but you can explain a huge part of economics with it.

You must first remember that economics is the study of how resources are allocated under conditions of scarcity. Scarcity implies that there are not enough resources for all our wants, therefore decisions must be made by everyone.

This means that producers must decide how much (of a product) to produce, and consumers must decide how much (of a product) to consume.

The intersection of supply and demand determines the price that will satisfy both consumer and producer at a given level of quantity. This means it gives us the value of all goods, which can help us in determining the best way to allocate resources in the economy.

Hope that helps..

Answer 2

yes