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What Is Demand And Supply?

Demand and supply is a kind of economic model used in Microeconomics for price determination. The model describes that the price of a product per unit will vary in the market until the market needs equalize the quantity supplied. Supply schedule and demand schedule are the two tables used to represent Demand and Supply.

The link between a good’s price and supplied quantity is shown by Supply schedule table. The supply determinants include production cost, the expectation of firm, and a number of suppliers. While the Demand schedule indicates the goods that customers want to purchase at variable prices. The demand determinants are income, preferences, goods prices, the expectation of consumers, and potential customers.

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