supply and demand is perhaps one of

supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy. demand refers to how much (quantity) of a product or service is desired by buyers. the quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known an the demand relationship. supply represents how much the market can offer. the quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. the correlation between price and supply relationship. price, therefore, is a reflection of supply and demand.
the relationship between demand and supply underlie the forces behind the allocation of resources. in market economy theories, demand and supply theory will allocate resources in the most efficient way possible. how? law of demand and the law of supply.