0
Supply is how much of the product an economy has. The demand is how much the people need the product. These two make the price. Let's say the supply is high and demand is low, the price would be low. If it was the other way around, price would be higher.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
What is the concept of economy?
The concept of Economy is supply equals demand. Without demand there would be no supply which helps make up the economy.
Effects of supply and demand?
supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
A market economy is based on?
Supply and demand
What is the basis of a market economy?
Supply And Demand is the basis of most activity in a market economy.
What is the economy in which the interaction of supply and demand determines price and output?
Market Economy
What is the concept of economy?
The concept of Economy is supply equals demand. Without demand there would be no supply which helps make up the economy.
Effects of supply and demand?
supply and demand effects the market economy and commodity prices. with a increase in demand commodity price increases resulting in inflation in economy and viceversa, and with increase in supply by producers there is decrease in commodity price resulting in deflation in economy.
A market economy is based on?
Supply and demand
What is the basis of a market economy?
Supply And Demand is the basis of most activity in a market economy.
What is the economy in which the interaction of supply and demand determines price and output?
Market Economy
In a market economy what are prices are established by?
the interaction of supply and demand.
What is in a free enterprise economy supply and demand affect the of a product?
In a free enterprise system, when supply is low and demand is high, prices are higher, but when supply is high and and demand is low, prices are lower.
Who determines what goods to produce in the economy?
It is the demand and supply which determines the goods and services to produce in the economy.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
What does the economy produce Whatever people are willing to buy?
The concept of demand and supply comes into play in the economic arena when it comes to production and consumption pattern. The demand plays a crucial role and the break even is necessary in the economy. The demand curve always follows negative slope while the supply has a positive slope. The more the demand, the more would be the supply. So as we see that demand and supply are directly proportional and economy produces what people are willing to buy.
How are prices determined in a well functioning economy?
By simple supply and demand theory. The more demand, or the less supply, will lead to higher prices. The less demand, or more supply, will lead to lower prices.
What is the role of competition in a free market economy?
To change the supply and demand
