Entity: DEMAND-AND-SUPPLY
Demand-and-supply refers to the relationship between the quantity of goods and services available for purchase and the quantity that consumers desire to buy. It is a fundamental concept in economics that influences pricing and market dynamics.
DEMAND-AND-SUPPLY
Etymology
The term 'demand-and-supply' originates from the field of economics and describes the interaction between the quantity of goods and services available for purchase and the quantity that consumers desire to buy.
Definition
Demand-and-supply is a fundamental economic concept that describes the interaction between the availability of goods and services and consumer desire to purchase them, influencing market prices.
Historical Context
The concept of demand-and-supply has been a cornerstone of economic theory for centuries, dating back to the classical economists such as Adam Smith and David Ricardo. It forms the basis for understanding market dynamics and price determination.
Cultural Significance
Demand-and-supply plays a crucial role in shaping various aspects of society, including pricing strategies, resource allocation, and market equilibrium. Understanding this concept is essential for businesses, policymakers, and consumers alike.
Related Concepts
- Market Equilibrium
- Price Determination
- Elasticity of Demand
See Also
- Economics
- Market Dynamics
- Microeconomics
A fundamental economic concept that describes the interaction between the availability of goods and services and consumer desire to purchase them, influencing market prices.