Difference between supply and demand

Posted By: Sm Adminon: January 22, 2016In: Miscellaneous

Supply:
Supply is the total amount of goods or services which is available for the purchase. It must have both the ability and willingness to sale in a certain price, other factors remaining constant. When the price of the product increases, the supply also increases and when the price of the product decreases, the supply also decreases. So it has direct relationship with price. The supply curve slopes upward from left to right.
Demand:
Demand is the ability and willingness to purchase a product at the certain price in a certain place. When the price of the product increases, the demand decreases and when the price of the product decreases, the demand increases. This shows an indirect relationship with price. The demand curve slopes downward from left to right.
Differences:

Basis	Supply	Demand
Definition (www.oxforddictionaries.com)	Make (something needed or wanted) available to someone; provide	An insistent and peremptory request, made as of right
Synonyms	Give, provision, deliver, reserve, yield, grant	Command, necessitate, forge, urge, claim, call, requisition
Antonyms	Debt, deficiency, seize, agreement, activate	Grant, obviate, assign, deny, exact, implore
Part of Speech	Verb	Noun
Word origin	The word supply was originated from Late Middle English: from Old French soupleer, from Latin supplere ‘fill up’, from sub- ‘from below’ + plere ‘fill’. The early sense of the noun was ‘assistance, relief’ (chiefly a Scots use).	The word demand was originated from Middle English (as a noun): from Old French demande (noun), demander (verb), from Latin demandare ‘hand over, entrust’ (in medieval Latin ‘demand’), from de- ‘formally’ + mandare ‘to order’.
Factors affecting	The factors affecting supply are: Price Cost of production Natural conditions Technology Transport conditions Factor prices and their availability Government goods Price of related goods	The factors affecting demand are: Price of given commodity Price of related goods Substitute goods Complementary goods Income of the consumer Tastes and preferences Expectation of change in the price in future
Limitations	Its limitations are: War period Need for money Future fear Transferability	Its limitations are: Prestige goods Price expectation Ignorance of the consumer Giffen goods
Pronunciation	Eng (UK): /səˈplʌɪ/ Eng (US): /səˈplī/	Eng (UK): /dɪˈmɑːnd/ Eng (US): /dəˈmand/
Impact of Price	Supply increases along with the increase in price. So it has a direct relationship.	With an increase in price the demand decreases and vice versa i.e. indirect relationship.
Curve	A basic supply curve is depicted as an upward slope.	A basic demand curve is depicted as a downward slope
Law	The law of supply states that the higher the price the higher the quantity supplied. This is because a higher price allows the supplier to get increased revenues, giving him capital to produce more.	The law of demand states that if all other factors are constant, the higher the price of a good, the less demand it will have among people.
Example in Sentence	They have constant supply of water. These foods supply the body with necessary vitamins.	The demand for car is increasing. Her demand is increasing day by day.