Demand and supply theory discusses the price and quantity of a structured product and discusses its response to the market economy .the economics of social economics are used in determining the price and quantity of the products in a competitive market .it works like a pillar based on other market structures and theoretical practices in a market structure.
Depending on the quantity of liquids in an existing market its demand is on the demand where ball the buyers are ready to purchase each single value of the product. Demand is essentially a table or a reflection of a chia which is related to the price and quantity of the produce .demand theory discusses that consumers will logically choose different quantities of an each product in existing income, prices ,preferences etc.in demand theory it is said that an existing market is generally related to the opposite of price and demand.in other words ,if the increase in prices of the product ,less consumer purchasing power and the willingness to purchase .if the Increase in the price of the liquid decreases the purchasing power of the buyer and the consumer faces low price .other uses also affect the demand.
Supply is the relationship between the price of the goods and the amount of money that the vendor has at that price .the supply is basically a table or reflection which is related to the price of the goods and the amount of the remaining. The producer accepts the profit maximization which means the producer will produce the amount of the product that maximizes his profit. The ratio mainly the proportion of the price and the amount of unleaded goods.in other words the solution can be sold at the highest price most of the producers deliver that amount. Increase the profit by increase the price of the product. The amount of supply at low prices is less than the demand for the goods.it is the intersection of two lines in the chia which is called market balance.
Demand and supply are used in the distribution of income in manufacturing where labor and investment are included in market production. For example in labor market it is said that the amount of labor and labor costs of the employed workers will determine the labor demand and supply of labor.
Demand and supply fully describe the behavior of competitive markets but it serves as an ideal for the growth of various types of market activities. Demand and supply explains the socio economic variables in the market economy such as the total amount of goods and the general price level.
Yale University, Economics