What does supply-and-demand analysis involve?

Question

Quizplus · Accepted Answer

Supply-and-demand analysis involves comparing the old equilibrium (where supply equals demand and the market is in balance) with the new equilibrium (where there has been a shift in either the supply curve or demand curve, causing a new market price and quantity to be established). This analysis takes into account the interplay between buyers and sellers in a market, as well as the factors that influence supply and demand for a particular product or service. It does not involve comparisons between products in different markets, buyer reluctance to pay market price, or friction between buyers and sellers.

What Does Supply-And-Demand Analysis Involve