Question
Demand and Supply are opposite forces.

Answer

Yes, I agree with this statement.
Both demand and supply are opposite forces.
  • Demand explains the consumer’s behaviour with respect to change in price of a commodity. Supply explains the producer’s behaviour with respect to change in price of a commodity.
  • Demand is inversely related to price of a commodity i.e., when price of a commodity rises the demand for it falls and when price falls the demand rises. Supply is directly related to the price i.e., when price rises, supply expands and when price falls, supply falls or contracts.
  • The demand curve slopes downwards. It has a negative slope. The supply curve slopes upwards from left to right. It has a positive slope. Both opposite forces together determine the equilibrium price.
  • A consumer aims at maximum satisfaction with his limited income. So he demands more at a lower price and less at a higher price. Whereas a producer aims at maximum profit so he supplies more at a higher price and less at a lower price.
  • Thus, the above statement is true.

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