The Supply and Demand Model is an economic model used to analyze the relationship between buyers, sellers, and prices in a market economy. It is a basic framework that can be used to explain price fluctuations and production levels over time. The model suggests that when demand increases and supply remains constant, prices go up; when demand decreases and supply remains constant, prices go down. A deep understanding of the Supply and Demand Model enables businesses to better identify opportunities for supply chain optimization and pricing strategy.