What is supply and demand?

Supply and demand is what drives economics and drives markets.

It is a fundamental force that is so easy to understand and yet so complex and profound at the same time.

You need good knowledge of supply and demand for GCSE economics and further.

The name is quite descriptive and is exactly that - the supply of an object and demand.

Say I sell apples for instance, and five people want one apple a day. Then demand is five apples per day.

If I have five apples to sell exactly then there is a perfect match.

If some days I only have a couple of apples then there is a short supply of apples, and apples are in high demand therefore, and prices may go up as people want to secure the apples there are.

If I have a glut of apples then supply outstrips demand, and therefore I may find it hard to shift my apples without lowering prices.

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