demand
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supply
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1.
Meaning
Demand is a desire backed by ability to pay
and willingness to buy a given price for a commodity at given time and place.
2.
Origin and Purpose
Demand originates form the consumers who
want to satisfy their wants.
3.
Price Relationship
There exists an inverse relationship
between price and demand. It means that more quantity is demanded at lower
price and vice versa.
4.
Shape of the curve
Demand curve slopes down ward
from left to right. Demand curve has a negative slope.
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Supply refers to the quantity of a
commodity offered for sale at a given price and at a given time and place.
Supply originates from the
producers/sellers/dealers who want to earn profit.
There exists a direct relationship
between price and supply. It means that more quantity is supplied at higher
price and vice versa.
Supply curve slopes upwards
from left to right. Supply curve has a positive slope.
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DEMAND SUPPLY
