2007-11-06 10:54:28 · 4 answers · asked by Anonymous in Social Science ➔ Economics
Just think!
Imagine there is a Wendys and a McDonalds next door to each other. Both sell soft serve ice creams. The difference is that Wendys charge $3.00 each and McDonalds charge 30cents. Who will see more (other things being equal). This is how "demand" works. It simply says that the lower the price for a commodity is the more of that commodity consumers are willing to buy.
You go into business producing a new commodity (call them zims). The higher the price of zims, the more you are willing to produce and sell. This is "supply".
These principles can be graphed. The supply curve will slope upwards to the right (quantity on horizontal axis and price on vertical). Demand will have a curve that slopes down to the right.
NB it is called a "curve" even if it is a straight line.
2007-11-06 11:12:21 · answer #1 · answered by jemhasb 7 · 0⤊ 0⤋
although the other answer were amusing they did not actually explain supply and demand. When consumers want more of something that is Quantity Demanded (Qd) not to be confused with demand. The law of demand states there is an inverse relationship between the price of a good and the quantity buyers are willing to purchase in a set time; (ceteris peribus). The law of supply is the direct relationship between the price of a good and the quantity sellers are willing are willing to offer in a set amount of time; (ceteris peribus). Supply and Demand is these two Laws coming together.
2007-11-06 19:47:41 · answer #2 · answered by joel p 2 · 0⤊ 0⤋
The more there is a need, the more they want and the more they want, you supply it.
For example, the health care system. They don't want you well and they don't want you dead... They want you somewhere in the middle so that they can keep supplying drugs. The drug suppliers keep getting richer while the sickos keep getting sicker.
The California Gold Rush as another example, you supply the pick axes because there is a demand for it. the suppliers of the pick axes continued to get richer than the pan handlers looking for gold.
2007-11-06 19:01:40 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Demand is when a cusumer or customer has a need for a perticular product or service. And suppy is when a business or business person "supplies" what product or service is needed at a cost or for free
2007-11-06 19:02:31 · answer #4 · answered by charles h 2 · 0⤊ 1⤋