In economics, quantity supplied describes the number of goods or services that suppliers will produce and sell at a given market price. The quantity supplied differs from the actual amount of supply (the total supply) as price changes influence how much supply producers actually put on the market.
What does quantity demanded mean?
Quantity demanded is the amount of goods or services that consumers demand over a measurement of time. It depends on a product’s price. The relationship between the two is often referred to as the demand curve. A good or service can be inelastic if it’s immune to demand because consumers demand it regardless of its price.
What is the relationship between price and quantity?
The price of a product and the quantity demanded for that product have an inverse relationship according to the law of demand. An increase in quantity demanded is caused by a decrease in the price of the product and vice versa. The price of a good or service in a marketplace determines the quantity that consumers demand.
