Supply and demand are super important in economics. They help us understand how markets work. Here’s why they matter:
Prices: Supply and demand help set prices. If there’s a lot of something available (supply) but not many people want it (demand), the price usually goes down. If lots of people want something but there's not much of it (high demand and low supply), the price goes up.
Market Equilibrium: This is where supply meets demand. It helps us find a good balance between how much is available and how much people want.
Consumer Behavior: Knowing about supply and demand can help us guess how changes in what people like can change the market.
So, to sum it up, understanding supply and demand is key to knowing how economies work!
Supply and demand are super important in economics. They help us understand how markets work. Here’s why they matter:
Prices: Supply and demand help set prices. If there’s a lot of something available (supply) but not many people want it (demand), the price usually goes down. If lots of people want something but there's not much of it (high demand and low supply), the price goes up.
Market Equilibrium: This is where supply meets demand. It helps us find a good balance between how much is available and how much people want.
Consumer Behavior: Knowing about supply and demand can help us guess how changes in what people like can change the market.
So, to sum it up, understanding supply and demand is key to knowing how economies work!