The demand and supply curve is a business tool used to understand how markets work and how prices are determined. The curves illustrate the relationship between the quantity of a product that will be purchased and its price in the market. The demand curve shows the quantity of a product that will be purchased at different prices – for example, it will show how many units of a product consumers are willing to buy when its price increases or decreases. On the other hand, the supply curve shows the quantity of a product that suppliers are willing to provide at different prices – for example, at what price point would producers be motivated to produce more or less of a product. By studying these curves, businesses can gain insights into pricing strategies and market trends.