Supply and demand, why demand is better - Article Example

Annotated Bibliography on Demand and Supply Introduction Economics is a discipline within the markets arts and practices that depends on two major factors related to the markets where economics fully depend. These are demand and supply. Demand implies the quantity of the products or services preferred by the customers. In other terms, the quantity of the product demanded is the amount of the product that the customers are willing to buy at a given price and at a specific time in the market. On the other hand, supply implies the amount of a given product the market can offer to the customers.

This quantity is also linked to the ability and willingness of the producer to supply to the consumers. One of the two factors in economics is dependent on the other and therefore the independent factor is the most important in economics. According Blaug, supply depends on demand in the market.Blaug, Mark. Economic Theory in Retrospect. Cambridge: Cambridge University Press, 2009 4th Edition.Article DetailsThe article is titled, Economic Theory in Retrospect and was published by the Cambridge University Press.

The article is authored in English as the original language of the author and the target group. The major subjects covered in the article are economics and history within the concepts and discipline of economics. The economic history contained in the book is linked to the fathers of economic and the concepts they applied to explain economic.Scope of the bookThis book covers the historical situation and concepts economics and the current thoughts including the relationship between demand and supply.

The author outlines the equations of demand and supply curves and it is from this point that the reliance of supply on demand in the economical perspectives reveals the significance of demand over supply.Discussion of the BookThe impact of demand on the central factor of both demand and supply that is the price implies a course of effect on supply. The author argues that the increase in the demand of a given product at a given price increases the motive to supply the customers with the commodities demanded.

When demand increases the prices in the market increases too prompting the need to meet the demand that is desired in the market and the producers are forced to increase the supply. Supply in market is linked to the possibility and surety that the market will be able to buy the products. Higher prices caused by increase in the demand in the market inspire the producers to increase the supply into the market. Higher prices indicate the times when the producers are targeting the market and this is the time they increase the supply into the market.

This therefore reveals that demand is independent of supply while supply depends on demands.Summary of the Article and ArgumentThe relationship of demand and supply is proven through the impacts that they have on prices of the commodities being the subject. The status of the market of the product is dependent on demand in that is the demand increase and the producers do not respond to increase the supply, then the market will run shortage of the product. This is a different situation when demand decrease and the supply increases then the market will overflow with the product.

The demand in the market determines all the economic factors in the market. Consequently, supply depends on demand and demand determines the extent of economic growth in the given market.Works Cited:Blaug, Mark. Economic Theory in Retrospect. Cambridge: Cambridge University Press, 2009 5th Edition.