what is demand n supply?

Answer 1

Supply and demand is a partial equilibrium (meaning the pricing is fixed and based on the price of one product), microeconomic theory. It was created by Marshall, and basically it states that prices vary depending on demand and availability of a product. For example, if you flood the market with microwaves and the availability exceeds the demand then the price of your microwaves will decrease. But, if more customers want your microwaves and you have a low availability or a shortage on microwaves, then you can drive the prices up.

Answer 2

It's the basic principle of supply and demand and it states that if people want more of a limited thing then the price for that thing will go up until the price matched the demand. Basically if 50 people want the wii at 250.00 and you only have 10 wii's the prie of the wii will go up until only 10 people are willing to pay that price.

Answer 3

To define, demand is the quantity of a product that a consumer or buyer would be willing and able to buy at any given price in a given period of time. Demand is often represented as a table or a graph relating price and quantity demanded. Most economic models assume that consumers make rational choices about how much to buy in order to maximize their utility - they spend their income on the products that will give them the most happiness at the least cost. The law of demand states that, in general, price and quantity demanded are inversely related. In other words, the higher the price of a product, the less of it consumers will buy.

Supply is the quantity of goods that a producer or a supplier is willing to bring into the market for the purpose of sale at any given price in a given period of time. Supply is often represented as a table or a graph relating price and quantity supplied. Like consumers, producers are assumed to be utility-maximizing, attempting to produce the amount of goods that will bring them the greatest possible profit. The law of supply states that price and quantity supplied are directly proportional. In other words, the higher the price of a product, the more of it producers will create.

The theory of supply and demand is crucial to explaining the market economy in that it explains the mechanisms by which prices and levels of production are set.

In microeconomic theory the partial equilbrium supply and demand economic model originally developed by Alfred Marshall attempts to describe, explain, and predict the price and quantity of goods sold in competitive markets. It is one of the most fundamental models, widely used as a basic building block in a wide range of more detailed economic models and theories. The theory of supply and demand is important in the functioning of a market economy in that it explains the mechanism by which many resource allocation decisions are made. However, unlike general equilibrium models, supply schedules in this partial equilbrium model are fixed, as the long run reciprocal relationship between demand and supply is ignored.

In general, the theory claims that where goods are traded in a market at a price where consumers demand more goods than firms are prepared to supply, this shortage will tend to increase the price of the goods. Those consumers that are prepared to pay more will bid up the market price. Conversely prices will tend to fall when the quantity supplied exceeds the quantity demanded. This price/quantity adjustment mechanism causes the market to approach an equilibrium point, a point at which there is no longer any impetus to change. This theoretical point of stability is defined as the point where producers are prepared to sell exactly the same quantity of goods as the consumers want to buy.

Answer 4

Supply is how much you have of a certain product
Demand is who is willing to buy it

The higher the supply is the lower the demand
The lower the supply is the higher the demand..yeah

Answer 5

first of all demand and supply are positive
as the demand of people for goods and increase and the suppliers increase their supply from materials that needed to make the product
demand is a function that determine the need of people for specific product at specific period of time
and supply determine the amount of supplies provided during specific period of time

Answer 6

Supply is the amount of a good or service that producers are wililng to make given a cirtain price.
And Demand is the amount consumers are willing to buy given a cirtain price.

Answer 7

demanding an Elmo for Christmas and mom can't get it cause they only had so many made(supply)

Answer 8

supply and demand.


it's the fluctuation of prices based on the abundance (or lack there of) of a certain item or service.

gold is rare, so it is expensive. water is everywhere, so it's cheap.

Answer 9

PS3

Answer 10

Every thing!