Answer:
see below
Step-by-step explanation:
Supply
Supply is the volume of a product or service that suppliers are willing to sell at the market at the stated price. The quantities supplied have a direct impact on the price of the product or service. The ideal volume is the equilibrium quantity, where there is no excess or short supply. Both sellers and buyers are happy with the price at the equilibrium quantity.
Should supply exceed equilibrium quantity, there is an excess supply in the markets. Many suppliers try to sell to a few buyers. Consequently, the prices decrease. When supply is below the equilibrium quantity, it causes a shortage in the market. As buyers compete for the few available products and services, prices increase.
Demand
Demand refers to the quantities that buyers are willing to purchase at a given price in a period. There exist a direct and proportionate relationship between the demand and price of a product or a service. An increase in demand causes the price to rise. When the demand falls, the prices decline.