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Running head: SUPPLY, DEMAND AND EQUILIBRIUM

Supply, Demand and Equilibrium
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SUPPLY, DEMAND AND EQUILIBRIUM
Introduction
Economics is the allocation of resources, distributing the resources and consuming the
resources. This involves management of products from companies or any farm (Fleetwood,
2014). Classical economics shows static model of the relationship between the supply and the
demands of goods. Currently in the real world, the prices of goods in the market places are
affected by the inventions in goods held by the manufactures (Kittaneh, 2014). Suppose the rate
of supplying of the goods and services equals the consumer demands, then, economically it is
said that the market is at equilibrium. The discussion below focuses on supply, demand and
equilibrium under in details. The discussion as well looks at the relationship between supply,
demand and equilibrium in market places, which is elaborated using the supply and demand
curves.
Supply
Supply is the ability of the seller or a company to deliver goods and services to the
customer. It may occur at the market places or at the factory sites. The rate at which the supplier
will deliver the goods to the customer depends on the price of the goods at the market place.
When the price of a commodity is high, then more goods can be supplied (Marwala & Hurwitz,
2017). Most suppliers prefer retaining their goods up to the periods when their prices hike.
The supply rate also depends on the demand rate of the commodity in the market center.
When the commodity demand is high, the supplier may increase the rate of supplying the
commodity. This goes in line with the insufficiency of the commodity in the market place. This
as well may force the seller to raise the price (Kittaneh, 2014). Of the commodity in order to
realize...