Demand and supply are two main component parts of the market. Changes of the demand and supply regulate market and determine what to produce? how to produce? for whom to produce? These are three basic questions in the economic.
Supply and demand analysis: explains how prices are established in markets through competition among buyers and sellers, and how those prices affect quantities traded.
Demand is a relationship between the price of an item and the quantity demanded. The term "demand" as use in economics is not a fixed number. When we analyzing a given demand for a product, we assume that demand determinants other than the price of the item are held fixed.
The quantity demanded of an item is the amount that buyers are willing and able to purchase over a period at a certain price, given all other influences on their decision to buy.…
