If you were to ask a business owner what the most important part of their job was, you would probably hear them say that it is sales. Sales are the engine that keeps any company going and helps it grow. However, without someone on the other side of those transactions (a customer), there can’t be a sale.
So how do these two groups come together? The answer lies in supply and demand economics. Supply and demand economics is a major part of any transaction. It can be said that the entire economy relies on this theory – if supply was high but there were no buyers, goods would not get sold and people who produce these products might lose their jobs.
Conversely, if all companies stopped producing because they didn’t have customers to sell to, then everyone’s salaries would dry up as well! Supply-demand economics ensure that both sides stay in balance so that neither side has too much power over the other. Everyone stays happy and employed with balanced trade thanks to supply-demand principles! The question of how many items will be produced when fixed resources are used becomes one about what price should each unit of output command in order for it.