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 is the differences between Primary and secondary research?


How do i get all the marks from a long answer question?


What is the difference between a public limited company and a private limited company?


Zak and Kellie own a successful food catering business called Meals at Work in Lisburn. Zak and Kellie want to grow the business and are thinking about franchising. (g) Evaluate franchising for this business.


We're here to help

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