RELATIONSHIP BETWEEN SUPPLY AND DEMAND

SUPPLY

 - Willingness and ability of the producers to offer the goods in the market for sale at various prices

 - In simple words supply is how much something is available .

 - E.g-if you have 12 pens ,then your supply of pen is 12.

DEMAND

 -Consumer desire , ability and will to purchase goods at a various prices.

 -In simple words demand is how much the people want.

 -If 6 people want pen , then we can say that the demand for pen is 6.

RELATIONSHIP

 -Generally speaking  , the price of something go up if the demand  goes up. If more people want            something they will pay more for the item.

  Eg- new i phone , everybody wants it and pay more and the company know they can get more            money for that product.

 -In the same way price will go down when demand goes down.

  Eg-When the new i phone model enter in the market the older model price decrease drastically.

 -The above statements suggest that one can track supply demand by tracking the price of the product.

 -Here the quantity demanded is the amount of a product people are willing to buy at a certain price;      the relationship between price and quantity demanded is known as the demand relationship.supply      represents how much a market can offer.