Supply and demand is a core concept in microeconomics that explores the relationship between the availability of goods or services (supply) and consumers’ desire to purchase them (demand). Supply represents the willingness of producers to sell at various prices, while demand represents consumers’ willingness to buy at different price levels. The interaction of supply and demand determines the equilibrium price and quantity in a market. Understanding supply and demand helps businesses make production decisions, governments implement economic policies, and consumers make informed choices. It provides insights into market trends, pricing patterns, and resource allocation, shedding light on how economies function.