Economics lesson number 1: Supply and Demand

In a market economy, the prices of goods and services are influenced by the interaction of the market forces of supply and demand.

If there are only a limited stock of some product available, competition between potential buyers tends to see prices rise, as consumers ''bid up'' prices.

Lesson over

Next Week : The theory of Market Equilibrium

Posted By: Tony Martin, Aug 25, 14:41:18