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What are Demand & Supply?

Demand and supply is a type of economic model used in Microeconomics for cost determination. The model describes that the price of a product per unit will differ in the market until the market needs to 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 cost and supplied quantity is shown by the Supply schedule table. The supply determinants include production cost, the expectation of the firm, and the 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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