supply and demand
Supply and demand are fundamental economic concepts that explain how prices are determined in a market. Supply refers to how much of a good or service producers are willing to sell at various prices. Demand is the quantity of that good or service consumers are willing to buy at those prices. When demand exceeds supply, prices tend to rise, as consumers compete for limited goods. Conversely, if supply exceeds demand, prices typically fall. The interaction between supply and demand creates an equilibrium price, where the amount supplied matches the amount demanded, ensuring a balanced market.
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Supply and demand are fundamental concepts in economics that describe how prices are determined in a market. Supply refers to how much of a good or service producers are willing to sell at various prices. Demand, on the other hand, indicates how much of that good or service consumers are willing to buy. When demand exceeds supply, prices tend to rise; when supply exceeds demand, prices generally fall. The interaction between supply and demand helps establish an equilibrium price, balancing what consumers are willing to pay with what producers are willing to sell.
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Supply and demand is a fundamental economic principle describing how prices are determined in a market. **Supply** refers to how much of a product or service is available for sale, while **demand** represents how much of that product or service consumers want to buy. When demand is high and supply is low, prices tend to increase. Conversely, if supply exceeds demand, prices generally fall. This dynamic helps balance the needs of buyers and sellers, influencing everything from grocery prices to the housing market. Understanding this relationship is key to grasping how markets operate.