How to Work on Demand and Supply Analysis? clipaper.com

Supply and demand are the two important concepts in economic theory. The determination of price in a free-market economy depends upon the interaction of supply and demand. Demand means the prevailing desire in the market for a particular product or a service. As the demand increases for a product or a service, its price also increases. As a result, suppliers increase the volume or quantity of that product in the market to maximise their profits. However, once there is ample supply in the market, the demand curve diminishes