The market is the place for the exchange of goods, services and information between two different parties. There can be more than two parties involved in the market by the purpose of purchasing and selling. The market depends upon the supply and demand of the products. These two factors are the economic models of the market that is used for price determination. The Law of supply and demand is the most important concept of economics.

When we talk about the law of demand and supply, it is the theory of economics that explains the relationship between the demand and supply of the product. The law of the supply states that the prices fall when there is an increase in the quantity of supplied goods. On the other hand, the law of demand the demand for the good falls when there is a rise in the prices. In simple words, when the supply is low and demands high, the price increase is called the law of demand. Similarly, when Supply is high and demand is low, the prices fall which is called the law of supply. The function of the market is to balance the supply and demand of the product using “Equilibrium”.

Students who are pursuing their degree course in economics are expected to have detailed knowledge about the law of demand and supply because it is involved in almost every economic phenomenon. It is part of microeconomics. It would be not wrong to admit that these laws are a little bit confusing for the students. If you are facing difficulties in understanding these laws then you can take assignment help on Law of supply from the professionals of BookMyEssay.

Factors Affecting Supply: The supply is determined by so many factors. The improvement in the technology, input prices, production capacity, production cost, market size, natural conditions and policies of the government are the most common factors that can affect supply.

Factors Affecting demand: The main factor that affects demand is the cost and quality of the product. The other factors are complementary goods, price expectation, and the size of the market and substitutes of product.

Meaning of Equilibrium in the Law of Demand and Supply

The economy is on equilibrium when demand and supply are equal. At this point the amount of supplied goods is exactly the same as of the amount demanded goods, these are the reason why the allocation of goods and services is the most efficient. All the individuals and firms get satisfied with equilibrium. This is the point where suppliers can easily sell the goods that they have produced and consumers can get good that they want.

The law of demand and supply is a very broad concept. The major difficulty that student face while writing assignments on this topic is when they have to write about the application theories and case studies. These theories are a little bit complex which is the reason why they avoid attempting these assignments. At such circumstances, you must consider getting homework and assignment help on this topic.

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