Answer:
Step-by-step explanation:
Demand and supply are the two fundamental forces that determine the price and quantity of a good or service in a market economy.
Demand refers to the quantity of a good or service that consumers are willing and able to purchase at a given price. As the price of a good or service increases, the quantity demanded typically decreases, and as the price decreases, the quantity demanded typically increases. This relationship between price and quantity demanded is known as the law of demand.
Supply, on the other hand, refers to the quantity of a good or service that producers are willing and able to produce and sell at a given price. As the price of a good or service increases, the quantity supplied typically increases, and as the price decreases, the quantity supplied typically decreases. This relationship between price and quantity supplied is known as the law of supply.
The point where the quantity demanded and the quantity supplied are equal is called the equilibrium point. At this point, the market is in balance and there is no tendency for prices to change. However, if the demand is greater than the supply, the price will tend to rise, and if the supply is greater than the demand, the price will tend to fall.