Conclude why theory of demand and supply is important? How it is important. Give your justification....
Answers
Supply and demand are both keys to economic activity. The two influence each other and impact the prices of consumer goods and services within an economy. Supply is the amount of a particular good or service available at a given time to consumers. Consumers, expressing interest in purchasing a good or service, exhaust available supply, generally resulting in an increase in demand.
Demand is a measurement of consumer desire and consumer spending on a particular good or service at a specific price. As demand increases, available supply decreases and an increased supply may satiate available demand at that price. Prices may fall if supply continues to grow. If supply decreases, prices may continue to increase. Supply and demand have an important relationship that determines the prices of most goods and services. Many companies analyze this market relationship while making strategic product decisions.
Answer:
Bcos, Demand and supply is main part of market so that its decides the price of the market..