Supply and Demand are the fundamental principles of economics that describe how the price and quantity of a good or service are determined in a market.Demand refers to the quantity of a good or service that consumers are willing and able to buy at a given price. As the price of a good or service increases, the quantity of it demanded will generally decrease, and as the price decreases, the quantity demanded will generally increase. This relationship is represented by the downward-sloping demand curve.Supply refers to the quantity of a good or service that producers are willing and able to sell at a given price. As the price of a good or service increases, the quantity supplied will generally increase, and as the price decreases, the quantity supplied will generally decrease. This relationship is represented by the upward-sloping supply curve.The point at which the supply and demand curves intersect is called the equilibrium point and it represents the market price and quantity of the good or service. When there is a shortage or surplus of a good or service, the market forces will move the price until the market reaches the equilibrium point where the quantity supplied equals the quantity demanded.
