In economics, supply and demand refers to the relationship between the quantity of a commodity that producers want to sell at various prices and the quantity that consumers want to buy. It is the most prevalent paradigm for calculating pricing in economic theory. The equilibrium price is the price at which the good's producers and customers agree. The market is in equilibrium when producers supply the same amount of a good as consumers desire.
The quantity of an item required is governed by its price as well as a number of other factors such as the pricing of other commodities, consumer income and preferences, and seasonal influences.
A multitude of factors influence the quantity of a commodity that is supplied in the market, including the cost of substitute items, production technology, labour availability and cost, and other production factors.
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