Supply and demand are two of the most fundamental concepts in economics, and their interaction is key to determining the price of a product in a free market as well as to understanding the way ...

The law of demand is one of the most fundamental concepts in economics. Alongside the law of supply, it explains how market economies allocate resources and determine the prices of goods and services.

This might sound familiar if you took economics in college. It's the same principle for any commodity: The price is determined by supply and demand. Bid and ask are two points of a price quote.

Therefore, Keynesian economics supports a mixed economy guided mainly by the private sector but partly operated by the government. • Prices, and especially wages, respond slowly to changes in supply ...