Demand & Supply Analysis

Demand Supply Analysis Assignment Help

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Demand & Supply Analysis

Demand and supply analysis is an important tool of economics that enables us to understand the behavior of market prices and price fluctuations. However, much of this analysis is based on the premise that markets are free and unobstructed by governmental interferences and other controlling influences. But in real world, markets are not absolutely free to work automatically and ensure free play of forces of demand and supply. Government occasionally steps in to regulate and direct the markets to achieve some board objectives that may be deemed to be in the interests of some vulnerable sections of society. Thus, the free market mechanism has to work sometimes under constraints imposed by the government. The interplay of demand and supply forces under conditions of government controls and regulations is bound to produce results that are different from the free market operations. The resulting situation, viz. the quantity of a good bought and sold under controlled conditions, is called disequilibrium trading.


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