The supply and demand curve is a graphical representation of the relationship between the quantity of a good or service that is supplied by producers and the quantity that is demanded by consumers. It shows the equilibrium price and quantity of a good or service that will be produced and consumed in a given market. The
In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, the unit price for a particular good or other traded item in a perfectly competitive market, will vary until it settles at the market-clearing price, where the quantity demanded equals the quantity supplied such that an economic equilibrium is achieved for price and quantity transacted. The concept of supply and demand forms the theoretical basis of modern economics.