ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Supply is generally considered to slope upward: as the price rises, suppliers are willing to produce more. Demand is generally considered to slope downward: at higher prices, consumers buy less.

Detailed explanation-2: -A market economy is an economic system where two forces, known as supply and demand, direct the production of goods and services. Market economies are not controlled by a central authority (like a government) and are instead based on voluntary exchange.

Detailed explanation-3: -Supply and Demand Determine the Price of Goods and Quantities Produced and Consumed. Consumers may exhaust the available supply of a good by purchasing a given good or service at a high volume. This leads to an increase in demand. As demand increases, the available supply also decreases.

Detailed explanation-4: -In an unimpeded market, supply and demand determine the value of a product or service. Supply represents the amount of something that producers are introducing to the market. Demand represents the amount of that thing that consumers want to buy. When more people want it and fewer people have it, the price goes up.

Detailed explanation-5: -A market economy is an economic system in which individuals, rather than the state, own most of the resources. This includes land, labor, and capital. In a market economy, individuals control the use and price of these resources through voluntary decisions made in the marketplace.