Supply and Demand

Supply and Demand is an economic principle that states that the value of a property is based on the quantity available, the price of the property type, and the number of market participants.

 

The price of a commodity, good, or service, varies directly (but not necessarily proportionately) with demand.  (eg.  When demand goes up, price goes up.  When demand goes down, price goes down.)

 

The price of a commodity, good, or service, varies inversely (but not necessarily proportionately) with supply.  (eg.  When supply goes up, price goes down.  When supply goes down, price goes up.)

 

Market value is influenced by the interaction of Supply and Demand.  Supply is the quantity of goods and services offered by producers at a given price.  Demand is the quantity of goods and services that purchasers will buy at a given price.

 

•Price increases as demand increases and decrease as demand decreases

•Price increases as supply decreases and decrease as supply increases

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