Demand & Supply

Demand

In Economics, demand means the willingness and ability of people to buy goods and services. The people, referred as consumers, can demand for goods and servives only if they have money to buy them. The producers will not produce if there is no demand for the product.

The amount of a good or a service that consumers are willing and able to buy is known as quantity demanded

In normal situations, consumers will demand less for a product as the price of the product increases and vice-versa

Supply

In economics, supply means willingness and ability of producers to make and sell goods and services. The producers will supply only those goods and servies for which there is demand in the market.

The amount of a good or a service that producers are willing and able to sell is known as quantity supplied

In normal situations producers will supply more goods and services as the price increases and vice-versa.

Next Topic: Demand/Supply Curve

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