What is the best way to describe the basic economic concept of supply and demand?
Simply put, supply and demand is a function of how much of a product is available, how it is priced, how many people have adequate resources to purchase said product, and how many of them actually want to purchase it. The basics as explained by eNotes/Wikipedia are thus:
- If demand for a product increases, but its supply remains unchanged, price of said product will increase.
(This can often be seen at Christmastime when the year's most coveted new toy is suddenly in high demand, stores run out and people begin selling Tickle Me Elmo on Craigslist for $500.)
- If demand for a product decreases, but its supply remains unchanged, price of said product will decrease.
- If supply of a product increases and demand stays the same, price will drop.
- If supply of a product decreases and demand stays the same, then it leads to a price increase.
By using a product u like the most. so u will find interesting to explain.
Or taking a seasonal p;product Example in the hot season people would demand more for ice creams therefore due to high demand prices would rise due to low supply. but however in a cold season less demand for ice cream then their is excess supply therefore low prices.
Also can explain taking an new product which has just arrived to the market.