What are the basic principles of supply and demand and how do they affect prices?
Answer 1
Kelly Kirby
The basic principles of supply and demand are foundational concepts in economics. Supply refers to the quantity of a product or service that the market can offer, while demand refers to the quantity that consumers are willing and able to purchase. Prices are determined by the interaction of supply and demand; when demand exceeds supply, prices tend to rise, and when supply exceeds demand, prices tend to fall. These principles help explain market equilibrium, where supply equals demand, and the price at which this balance occurs.
Start Using PopAi Today