Answer to Question #234584 in Microeconomics for Koffee

Question

Supply and demand

Answer 1

Solution:

Supply and demand refer to the relationship between the quantity of a product or service that producers are willing to sell at different prices and the quantity that consumers are willing to purchase.

Supply refers to the amount of a particular product or service that businesses are prepared to sell at various prices, while demand is the quantity of a product or service that consumers are prepared to purchase at various prices.

In equilibrium, the quantity of a product or service supplied by businesses or producers equals the quantity demanded by consumers.