SUPPLY AND DEMAND

Supply and Demand

Supply and Demand

1) What are the advantages and limitations of supply and demand?

Supply and demand are very powerful factors in the economy. These two factors have perhaps the greatest effect on the price of a given commodity. A commodity is a material or article as opposed to a service. Demand is how much a person or group of people wants a particular commodity. Supply is the amount of the particular commodity (Court, 1970). While these two factors are not directly related, they are related in a way.

They are related in the sense that they have ...