Describe the Relationship Between Supply and Demand
The relationship between supply and demand results in many decisions such as the price of an item and how many will be produced in order to allocate resources in the most cost-effective and efficient way. It is the main model of price determination used in economic theory. What Is Supply And Demand Market Business News There is a direct relationship between supply and demand as supply usually rises when demand is high. . Describe the relationship between supply and demand. Supply has a direct relationship with the price of a. Key Differences Between Demand and Supply. The Law of Supply states There exists a direct relationship between prices of the goods and services in accordance with its supply. Its a fundamental economic principle that when supply exceeds demand for a good or service prices fall. Typically higher demand means higher prices while higher supply means lower prices. Which means as the price...