How do you explain supply and demand?

Answer 1

DEMAND- Demand means the quantity of a commodity or service that a consumer is willing to by at given price,place and time. There are three elements of demand:

1.price of a commodity

2. quantity demanded

3.a specific time and place

There are many types of demand,some of them are:

price demand,income demand,cross demand or joint demand,composite demand,individual demand,market demand,etc.

Law Of Demand: It explains the inverse relationship between the price and quantity demanded of a commodity. It states that other things remain constant,quantity demand of a commodity increases when its price declines and vice-versa. The other things which remain constant are income of consumers,price of relatedgoods,consumer taste and prefrences,etc.

Demand curve always slopes downward due to law of demand.

SUPPLY- Supply refers to the quantity of a commodity offered for sale at a given price,place[market] and time.

Elements of supply-

1.It is a desired quantity,how much the producers are willing to sell not howmuch they actually sells.

2.price

3.market

Law of Supply- It shows the direct relationship between price f a commodity andts supply. It statestht other things be equl,the supply of a commodity increases wih the increase in its price an vice-versa.

Determinants of supply are:

number of producers,taxes and subidies,natural factors,uture expectations regarding price.

The supply curve is upward sloping because of the law of supply.

Answer 2

Demand is the quantity of a good or service that a consumer is willing and able to purchase at various prices at a given time. The law of demand states that as the price of a good or a service increases, the quantity demanded decreases, ceteris paribus.

Supply is the quantity of a good or service that a producer is willing and able to produce at various given prices. The law of supply states that as the price of a good or service increases, the quantity supplied increases, ceteris paribus.

Ceteris paribus is Latin and means "all other factors remain unchanged" (except for price - in the case of Economics) This is important, because if a factor other than price were to change, then there would be a shift in the curve instead of a movement along the curve.

Answer 3

Demand is basically the desire to own something and the ability to pay for it, while supply is the amount of a good or service offered for sale. When the two are combined , the price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers, resulting bruh vines in an economic equilibrium of price and quantity.

Answer 4

Supply is what you have and demand is how much one thing is needed and in, well, DEMAND.