Supply is the total amount of goods or services which is available for the purchase. It must have both the ability and willingness to sale in a certain price, other factors remaining constant. When the price of the product increases, the supply also increases and when the price of the product decreases, the supply also decreases. So it has direct relationship with price. The supply curve slopes upward from left to right.
Demand is the ability and willingness to purchase a product at the certain price in a certain place. When the price of the product increases, the demand decreases and when the price of the product decreases, the demand increases. This shows an indirect relationship with price. The demand curve slopes downward from left to right.
|Make (something needed or wanted) available to someone; provide||An insistent and peremptory request, made as of right|
|Synonyms||Give, provision, deliver, reserve, yield, grant||Command, necessitate, forge, urge, claim, call, requisition|
|Antonyms||Debt, deficiency, seize, agreement, activate||Grant, obviate, assign, deny, exact, implore|
|Part of Speech||Verb||Noun|
|Word origin||The word supply was originated from Late Middle English: from Old French soupleer, from Latin supplere ‘fill up’, from sub- ‘from below’ + plere ‘fill’. The early sense of the noun was ‘assistance, relief’ (chiefly a Scots use).||The word demand was originated from Middle English (as a noun): from Old French demande (noun), demander (verb), from Latin demandare ‘hand over, entrust’ (in medieval Latin ‘demand’), from de- ‘formally’ + mandare ‘to order’.|
|Factors affecting||The factors affecting supply are:
||The factors affecting demand are:
|Limitations||Its limitations are:
||Its limitations are:
|Impact of Price||Supply increases along with the increase in price. So it has a direct relationship.||With an increase in price the demand decreases and vice versa i.e. indirect relationship.|
|Curve||A basic supply curve is depicted as an upward slope.||A basic demand curve is depicted as a downward slope|
|Law||The law of supply states that the higher the price the higher the quantity supplied. This is because a higher price allows the supplier to get increased revenues, giving him capital to produce more.||The law of demand states that if all other factors are constant, the higher the price of a good, the less demand it will have among people.|
|Example in Sentence||