Question

The idea of supply and demand is based on the development of ?

Answer 1

Sufficient number of products to meet what the consumer wants

Answer 2

Answer:

The correct answer for the question: The idea of supply and demand is based on the development of:______, would be, the offering and generation of the necessary number of products that will satisfy the needs of the consumer.

Explanation:

The theory of supply and demand, presented first by Adam Smith in 1776, sought to explain how in a free market economy, the offer of goods, the demand of goods, and prices, play a role and control each other. As such, demand is probably one of the fundamental parts of the theory as it is from the consumers´ needs that a producer will both supply, and price, their product. If demands of consumers were not met by a producer, then consumers would simply turn away to other producers who can offer them what they need, in the amount needed, and for the price that is desired. This is the reason why the answer above is the correct one.