Answer to Question #280552 in Macroeconomics for Gaigi

Question

Demand and supply

Answer 1

Demand is defined as a want for something backed up by the ability and willingness to pay for it. Supply, on the other hand, refers to the entire amount of a commodity that is ready to be sold. When demand increases, supply decreases, and when supply is adequate, demand decreases, implying that these two elements have an inverse relationship.