The foundational topic of economics, demand and supply Term Paper

The foundational topic of economics, demand and supply - Term Paper Example This paper also looks at other topics related to demand and supply in great details like Elasticities, Equilibrium situations and shifts in demand and supply. It should be remembered that purpose of this paper is purely academic and most of the research done is secondary in nature. The market can be defined as an institution or mechanism that brings together buyers and sellers of a particular goods, services or resources in order to determine a price and set equilibrium at the point where the plans of buyer meet the plans of the sellers. From the above point, it is very clear that market equilibrium occurs at price or a point where the buyers are willing to buy a particular quantity of goods at a going market price and similarly sellers are willing to sell the same quantity of the goods at the same price. In simple words, market equilibrium is related to demand and supply. In order to understand the equilibrium situation in detail, let’s first look at the meaning of the terms, demand and supply.