Definition
Market demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices. Market supply refers to the quantity of a product or service that producers are willing and able to offer for sale at various prices. The interaction of these two forces determines market prices and quantities.
Why it matters (in Poovi’s context)
Fundamental to understanding the viability of any business idea, as it dictates customer interest and potential for sales.
Key properties or components
- Customer willingness to buy
- Producer willingness to sell
- Price determination
- Quantity determination
Contradictions or debates
None.