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๐ Basic Economics
Supply & Demand
The fundamental force of markets โ price rises when demand exceeds supply; falls when supply exceeds demand
UK ๐ 1776 Basic Economics
Key Facts
- 1
Law of Demand: higher price โ lower quantity demanded (inverse relationship)
- 2
Law of Supply: higher price โ higher quantity supplied (positive relationship)
- 3
Equilibrium: price where supply equals demand; markets constantly tend toward equilibrium through price signals
๐ Did you know? Adam Smith's "invisible hand" โ individuals pursuing self-interest in a free market unintentionally promote the public good
Quick Reference
Category
Basic Economics
Country
๐ UK
Year / Era
1776
About
The fundamental force of markets โ price rises when demand exceeds supply