Question

What is supply and demand and how does it affect businesses?

Answer 1

Supply and demand comprises the fundamental concept on which our global economy stands. Evidence of this comes in the form of every country's money supply policies. Supply and demand remains relevant to every business, from the corner barbershop to the multi-billion dollar petroleum conglomerate. Companies that supply goods and services provide one side of the equation and an individual or another company provide the other side—consumerism.

Step-by-step explanation:

Answer 2

Supply is the amount of a product that exists to sell while demand is how much that product is wanted by consumers. High supply and high demand means that there's a potential for a lot of profit, but at the same time, high supply also lessens the need for demand over time. High demand is what you want for max profit, and most companies achieve this by lowering the supply.