Day 158 of 365
June 7
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Economics The Economics of Supply and Demand
Supply and demand is the fundamental economic principle explaining how prices are set. When demand exceeds supply, prices rise; when supply exceeds demand, prices fall. This equilibrium-seeking process coordinates production and consumption across entire economies without central planning.
💡 Did you know?
The first supply-demand graph appeared in 1838, but the concept dates back to ancient Rome!
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