Answer to Question #310374 in Microeconomics for smosh

Question

please explain to me the law of demand and supply how it works in economics and also explain to me debit and credit

Answer 1

please explain to me the law of demand and supply how it works in economics

The law of supply and demand is a theory that describes how sellers of a resource interact with buyers of that resource. The idea describes the link between a good's or product's price and people's willingness to buy or sell it. People are often inclined to supply more and demand less when prices rise, and vice versa as prices fall.

The law of demand and the law of supply are the foundations of the theory. The interaction of the two laws determines the real market price and volume of products.

• The law of demand says that at higher prices, buyers will demand less of an economic good.
• The law of supply says that at higher prices, sellers will supply more of an economic good.

explain to me debit and credit

In double-entry accounting, debits and credits are entries made in account ledgers to record changes in value as a result of business transactions. A movement of value to an account is represented by a debit entry, whereas a transfer from the account is represented by a credit entry.