Demand and supply

Demand and supply are fundamental economic concepts that describe how markets function. Demand refers to how much of a product or service consumers are willing and able to buy at different prices. Supply represents how much of that product or service producers are willing to offer at various prices. When demand exceeds supply, prices tend to rise; when supply exceeds demand, prices tend to fall. The interaction between the two helps determine the market price and the quantity sold. Essentially, demand reflects consumer desire and purchasing power, while supply reflects production capacity and costs.