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Economics Laws of Supply and Demand: Demand : A Demand refers to quantity of need for product by consumers. In other words Demand refers to how much of a product or service is desired by buyers.
Supply • Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price.
Relationship between supply and demand • The supply and demand have a positive relationship i.e. when the demand increases , then the supply also increases to fulfill those demand.
The Law of Demand • According to the Law of Demand , When the price of a Commodity increases , the demand of that particular commodity starts decreasing. since there is a negative relationship between price and demand in law of demand.
The Law of Supply • According to Law of Supply, there is a positive relationship between Demand and supply i.e. When the demand of a commodity increases , then the supply of that particular commodity also increases.
Equilibrium • Equilibrium is a point of balance between supply and demand where all the supply demand is meet at a equilibrium point on a curve of Equilibrium. In other words , when the supply and demand is equal the economy is at equilibrium. At this point the efficiency of demand and supply is at its at most level of customer satisfaction.
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