Supply and demand are basic ideas in economics that help us understand how markets work.
Supply: This is about how much of a product or service sellers are ready to provide at different prices. For example, if coffee prices go up, sellers will likely make more coffee.
Demand: This shows how much of a product people want to buy at different prices. If the price of a smartphone goes down, more people might want to buy it.
The spot where supply and demand meet is called equilibrium. This is where the amount sellers offer equals the amount buyers want. This balance helps decide prices and how many products are available in stores.
Supply and demand are basic ideas in economics that help us understand how markets work.
Supply: This is about how much of a product or service sellers are ready to provide at different prices. For example, if coffee prices go up, sellers will likely make more coffee.
Demand: This shows how much of a product people want to buy at different prices. If the price of a smartphone goes down, more people might want to buy it.
The spot where supply and demand meet is called equilibrium. This is where the amount sellers offer equals the amount buyers want. This balance helps decide prices and how many products are available in stores.