Introduction to entrepreneurship/IENT103/Economics/Supply

The Law of Supply and Demand, or simply Supply and Demand is a world recognised economic model which determines the price and item will sell at.

To understand the model we need to look at Supply, and Demand; before putting Supply and Demand together.

In simple terms:

• Supply is the amount or quantity of something that providers are willing to bring to the market at a given price.
• Demand is the amount or quantity of something that consumers want to buy at a given price.

So what is Supply and Demand? It is an economic model where the price at which a good is sold is controlled by the good’s supply, and its demand.

In January 2017 there was a shortage of courgettes due to bad weather across Europe . This resulted either in there being no supply available to supermarkets or where there was some the price went from £6-7/box to £20/box.

Required reading

There are multiple factors that affect Supply and Demand. To explore the model further read the following texts and then attempt the quiz below.

1. Impacts of Supply and Demand on Businesses by Boundless.
2. Supply and Demand on Wikipedia.

References