Supply And Demand Analysis
Supply and demand analysis is an economic framework used to understand how the quantity of goods or services supplied by producers and demanded by consumers interacts to determine market prices and quantities. It models the relationship between price, supply (the amount producers are willing to sell), and demand (the amount consumers are willing to buy), often visualized with supply and demand curves. This analysis helps predict market equilibrium, price changes, and the effects of external factors like taxes or subsidies.
Developers should learn supply and demand analysis when working on applications involving pricing algorithms, marketplaces, or resource allocation, such as e-commerce platforms, ride-sharing apps, or cloud computing services. It provides a foundational understanding for implementing dynamic pricing, inventory management, and forecasting features, enabling data-driven decisions in competitive or fluctuating markets.