Demand and supply are terms that refer to the behavior of people and firms as they interact in markets.

Question

Quizplus · Accepted Answer

This statement is true. Demand refers to the amount of a good or service consumers are willing and able to buy at a certain price, while supply refers to the amount of a good or service producers are willing and able to sell at a certain price. The interaction of these two forces determines market prices and quantities.

Demand and Supply Are Terms That Refer to the Behavior