Money
supply and demand
economics
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Also known as: consumer demand, supply
relationship of price to supply and demand
Category:
Money
- Related Topics:
- consumer surplus elasticity supply curve demand curve indifference curve
supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good. In equilibrium the quantity of a good supplied by producers equals the quantity demanded by consumers. The quantity of a commodity demanded ...(100 of 1083 words)