Supply is the quantity of a good or service that producers are willing to sell at various prices. Demand is the quantity of a good or service that consumers are willing to buy at various prices. The law of demand states that, ceteris paribus, as price falls, quantity demanded rises. The law of supply states that, ceteris paribus, as price rises, quantity supplied rises. Market equilibrium is achieved when supply equals demand at a certain price level.
Supply is the quantity of a good or service that producers are willing to sell at various prices. Demand is the quantity of a good or service that consumers are willing to buy at various prices. The law of demand states that, ceteris paribus, as price falls, quantity demanded rises. The law of supply states that, ceteris paribus, as price rises, quantity supplied rises. Market equilibrium is achieved when supply equals demand at a certain price level.