supply and demand
economic model of price determination in microeconomics
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Supply and demand is an economic model that explains how prices are determined in markets by examining how much of a good is available (supply) and how much people want to buy it (demand). It matters because it helps explain why prices rise when goods are scarce or highly desired, and fall when they are plentiful or less wanted.
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Supply and demand curves with economic equilibrium of price and quantity sold
Supply chain as connected supply and demand curves In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, the unit price for a particular good or other traded item in a perfectly competitive market, will vary until it settles at the market-clearing price, where the quantity demanded equals the quantity supplied such that an economic equilibrium is achieved for price and quantity transacted. The concept of supply and demand forms the theoretical basis of modern economics.