With regard to demand and supply in a market economy, it is correct to say that

Question

Quizplus · Accepted Answer

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at a particular price. Supply, on the other hand, refers to the quantity of a product or service that is available for sale at a particular price. The demand and supply schedule shows the quantity of a product that buyers are willing to purchase at different prices and the quantity of that product that sellers are willing to sell at those prices. The demand and supply curves are graphical representations of the demand and supply schedules. Equilibrium prices, where the quantity demanded equals the quantity supplied, are commonly attained in market economies. The statement about economies of scale is not relevant to the question of demand and supply in a market economy.

With Regard to Demand and Supply in a Market Economy