Question: In 6-8 sentences describe Demand and Supply (IN YOUR OWN WORDS), give examples and describe how the two concepts work
together. What is demand? Give an example.
What is supply? Give an example.
How do Demand and Supply interact together? (How does one affect the other?)
Demand is an economic principle referring to a consumer's desire to purchase goods and services and willingness to pay a price for.
The supply function and equation expresses the relationship between supply and the affecting factors, such as those mentioned above or even inflation rates and other market influences.
And they are simalirty is that both have goods and services that when supply exceeds demand for a good or service, prices fall. When demand exceeds supply, prices tend to rise.
Demand is in direct relationship to Supply, which both effect trade. Demand is the want of consumers to gain more of the product. Supply is the supplying of the wanted product, and the satisfying of customers.
Example:
The General Store sold out of lollipops two times this week. The store decided it would be best to put two shipment orders in for lollipops ahead of time.
Demand- Customers wanting lollipops from store
Supply- Store buying more lollipops and meeting consumer needs
