Everything you consume is related to Supply and Demand
Economics is the study of allocating scarce resources. It is a social science concerned wth the production, distribution and consumption of goods and services. Supply and demand are both key to economic activity. Demand is the desire, ability and willingness to buy a product, and supply is the amount that sellers are willing and able to sell at all possible prices that could prevail in a market. Look around you. Everything you consume is influenced by supply and demand and impact prices of consumer goods and services within an economy.
Supply and Demand
Supply
Supply is the amount of a particular good or service available at a given time to consumers. Consumers, expressing interest in purchasing a good or service, exhaust available supply, generally resulting in an increase in demand.
Demand
Demand is a measurement of consumer desire, ability, and willingness to buy a product, good,or service at a specific price. As demand increases, available supply decreases and an increased supply may satiate available demand at that price. Prices may fall if supply continues to grow. If supply decreases, prices may continue to increase. Supply and demand have an important relationship that determines the prices of most goods and services. This relationship will be come apparent while you continue this quest of learning about supply and demand.
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