Definition of demand and supply

In this blog we will discuss the definition of demand and supply.

Definition of demand: The amount of a particular economic good or service that a consumer or group of consumers will want to purchase at a given price may be defined as demand.

Definition of supply: The total amount of a good or service avaible for purchase along with demand is defind as supply.

For more information on the meaning of supply and demand, see the link on supply and demand definition. 

You can also know more about supply by learning about the determinants of supply.

There are four basic laws of supply and demand.They are mentioned below.

1)When demand increases and supply remains unchanged then there is higher equilibrium price and quantity.

2)When there is decrease in demand and supply remains the same then there is lower equilibrium price and quantity.

3)If there is increase in supply and demand remains unchanged then there is lower equilibrium price and higher quantity.

4)If there is decreases in supply and demand remains the same then there is higher price and lower quantity.

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