Question

Explain the terms ‘demand’ and ‘supply with an example from our daily life.

Answer

Demand- The demand for a good is defined as an amount of commodity for which people are willing to pay and buy.

Supply- Supply of a good is the quantity that the suppliers are willing to put in the market.

Example: When the price of a good rises, the supply also rises. When the price goes down, the supply also goes down.