What is the concept of supply and demand?

Question

the idea that the availability of and desire for goods impact each other

the idea that the world supplies more than it demands

the idea that the world demands more than it supplies

the idea that there isn’t enough of an item to meet the needs of people

Answer 1

The concept of supply and demand is best described by the statement: the idea that the availability of and desire for goods impact each other.

Supply refers to the quantity of a good or service that producers are willing and able to sell at different prices, while demand refers to the quantity that consumers are willing and able to purchase at those prices. The interaction of supply and demand determines market prices and the quantity of goods sold in an economy. When demand increases or supply decreases, prices tend to rise, and when supply increases or demand decreases, prices tend to fall.