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.
Frequently asked questions
What is the correct answer to this question?
They affect price, production, and sales planning
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
