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What is supply and demand in economics?

supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market.

Does supply and demand determine market conditions?

If the economic environment is not a free market, supply and demand are not influential factors. In socialist economic systems, the government typically sets commodity prices regardless of the supply or demand conditions. Does the Law of Supply and Demand Determine Market Conditions?

Do supply and demand determine market behavior?

Supply and demand guide market behavior but do not determine it. Supply and demand are important factors, and Adam Smith referred to them as the invisible hand that guides a free market. Does the Law of Supply and Demand Apply Only to Consumer Goods?

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