What is the difference between Supply and Demand? How do they work together?

Supply and Demand are two economic principles that describe how a good or service is consumed and supplied according to price. Demand refers to the ability of people to purchase a good at a given time and a given price, this usually decreases when price increases. For example you're way more likely to buy an ice cream if its 50p over £5.50? Thats essentially the principle, that people will buy more of a good if it is lower in price! There is an inverse relationship However, this is the opposite of supply, I am way more likely to supply more of a product for a higher price. For example if I sell ice creams, I would rather sell more for £5 than for £2, because i want to make money! The point at which supply and demand meet is an equilibrium price!

Related Business Studies GCSE answers

All answers ▸

What's the difference between SWOT and PEST analysis?


Explain two reasons why a small removals company might benefit from using a cash flow chart.


What are two benefits of a USP (unique selling point) for a business like Coca Cola?


What impact does business structure have on the success of the business?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences