5 Difference Between Demand and Supply

Demand and supply are the two major aspects of an economist. Economics directly deals with the demand and the supply. Demand the is the customer needs and desires. While the supply is the production of the products and made available for the buyer or the customers.

Demand is inversely proportional to the price of the product. When the price of the product increases demand of the product decreases and vice versa.

While with the increase in the price supply also increases and when price decreases supply also decreases. There are many differences between demand and supply. To understand the difference first we have to know about the demand and supply properly. In this article we will discuss the demand and supply and differences between them.

Demand vs supply

Sr. No.	Demand	Supply
1	Demand is the will and ability to pay the buyer.	Supply is the quantity offered by the manufacturer to sell in the market.
2	Demand curve is downward to the right.	Supply curve is upward to the right.
3	Demand is inversely proportional to the time.	Supply is directly proportional to the price.
4	Demand shows the indicator of the buyers and customers.	Supply shows the firm and manufacture.
5	Demand decreases with the taste and likes and dislikes of the buyers.	Supply is affected by the efficiency of the raw material.

Demand

Demand is the customer desire and the needs, willingness and ability to pay for the products. Demand law states that if the price of the product increases demand automatically decreases. And when the price of the product decrease demand increase. The demand graph is always remind downwards.

When the demand is more then the supply there would be surplus in the market. Demand is inversely proportional to price.

Supply

Supply is the quantity or the service which is offered or provided by the manufacturer to the buyer at some price. Supply depends upon the quality of the products which produce want to manufacture and sell with the various prices. And the second one is how much of the product is available at a time to sell to the buyer.

Supply is simply anything manufactures offer to sell in the market. Law of supply says if the price of the product increases supply of the product also increases. If prices decrease, supply of products also decreases. Simply means supply is directly proportional to the price of the product. This happened due to the profit margins. When price is higher profit will be higher.

Main difference between demand and supply

1. Demand is the will and ability to pay the buyer. Supply is the quantity offered by the manufacturer to sell in the market.
2. When the demand curve is downward to the right the supply curve is upward to the right.
3. Demand is inversely proportional to the time. While supply is directly proportional to the price.
4. Demand shows the indicator of the buyers and customers. And supply shows the firm and manufacture.
5. When the demand increases and supply remains constant it leads to shortage of supply.

Conclusion

Demand and supply are very important to maintain equilibrium in the market. Demand and supply is affected with many components. Like supply is affected by the efficiency of the raw material. And the demand decreases with the taste and likes and dislikes of the buyers. Price factor plays a big role in the demand and supply.

This is all about the demand and supply. We hope you understand the topic very well. If you have any doubts please comment on us. For more topics go through our website.