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What is the importance of demand and supply in business?

Answer and explanation

Correct answer: They affect price, production, and sales planning

Demand represents how much customers are willing and able to buy, while supply represents how much sellers can offer at different conditions. Their interaction influences market price, expected sales, inventory, and production decisions. They matter to small as well as large enterprises and can change with income, seasons, costs, and competition. Therefore, A is correct.

Related tags

DemandSupplyMarketEntrepreneurship DevelopmentMsme And Business EntrepreneurshipBusiness StudiesClass 11 Mcq

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