Background Information on Supply & Demand
Background Information on Supply & Demand Market attractiveness can be characterized by the interactions between inner motivations of buyers and manufacturers, as well as price and quantity for a product determined by the external market forces. Basically, the price reflects and channels the motives and desires of the potential consumers. Supply and demand are considered the fundamental principles of the market economy. Demand explains the necessary amount of a product desired by consumers. Supply represents the volumes of production the market can handle. The balance between price and volumes of production is known as the supply relationship. Meanwhile, price is ...