What is the question I’m kinda confused
It is technically a legal document, and it is binding. Which makes it unique from other types of documents. I’m not sure what you mean in regards to “tool”. But I would think it would be considered a reference document
Answer:
Explanation:
Example
Let us take this slowly by considering a bicycle. You are given 1 bicycle and you wish to sell it. 4 people are interested and think your price is fair.
so the supply is 1 bicycle
and the demand is 4 people
If those people are want the bicycle equally, what do you think could happen to the price of the bicycle? Shouldn't it go up? Especially if they are all willing to make side deals.
Supply: 1 bicycle
Demand: 4 people
Price goes up.
Now go back.
Suppose you have 10 bicycles and only 8 people are bidding on them. They are not really that interested. So you have to lower the price until someone bites.
Supply: 10 bicycles
Demand: 8 people.
Price goes down. The supply exceeds the demand.
