Naux Change 4 Choose One Activity From The Topic

Activity 2.3Supply and DemandSupply refers to the total quantity of a commodity available for acquisition in the market at any time and price. In trying to explain supply as one of the market forces, economists developed the law of supply. The law states that keeping other factors that affect market price constant, an increase in the cost of goods and services causes an increase in amount supplied.On the other hand, demand in economics denotes consumers' willingness to purchase a good or service available in the market at a particular time. The law of demand states that, if all conditions that affect the price of goods and services are kept constant, an increase in the price of commodities results to a decrease in the amount of product demanded. Equally, an increase in the cost of commodity results in a reduction of the quantity demanded.