oboloo Glossary

Demand Supply

oboloo Glossary

Demand Supply

Demand Supply is the core economic principle that drives the production and distribution of goods and services. It follows the law of supply and demand: when demand for a good or service increases, suppliers must increase production to meet it; when demand decreases, they must lower production. Demand Supply plays a critical role in the economy, as it determines how efficiently resources are allocated and what prices will be charged for them. Simply put, Demand Supply is the essential dynamic that allows organisations to plan, produce, and market their products and services effectively.