Over View of The Issue

The link between the quantity of a commodity that producers want to sell at various
prices and the quantity that customers want to buy is known as supply and demand
in economics. It is the most widely used price determination model in economics.
The combination of supply and demand in a market determines the price of a
commodity. The equilibrium price is the resultant price, and it symbolises an
agreement between the good's producers and customers. When producers supply
the same amount of a good as consumers desire, the market is in equilibrium.

The law of supply and demand is a theory that describes how sellers of a resource
interact with buyers of that resource. The theory describes the relationship between
a good's or product's price and people's willingness to buy or sell it. People are often
inclined to supply more and demand less when prices rise, and vice versa as prices
fall. The law of demand and the law of supply are the foundations of the theory. Both
rules work together to determine the actual market price and volume of products.

One of the most fundamental economic rules, supply and demand, is intertwined
with practically all economic principles in some way. In practise, the market
equilibrium price is determined by people's willingness to provide and demand a
thing, or the price at which the quantity of the good that people are willing to supply
matches the quantity that people demand. However, multiple factors can affect both
supply and demand, causing them to increase or decrease in various ways.

If all other circumstances remain constant, the law of demand asserts that the higher
the price of a good, the less people will demand it. In other words, the lower the
amount requested, the greater the price. Because the opportunity cost of buying a
good rises with its price, the amount of a good that purchasers purchase at a higher
price decreases. As a result, consumers will naturally avoid purchasing a product
that requires them to forego consumption of something they value more. The curve
in the graph below has a downward slope.

The law of supply, like the law of demand, shows the amounts sold at a given price.
The supply relationship, unlike the law of demand, has an upward slope. As a result,
the higher the price, the greater the quantity available. From the seller's standpoint,
the opportunity cost of each extra unit tends to rise. The higher selling price justifies
the greater opportunity cost of each additional unit sold, thus producers supply more
at a higher price.

It's critical for both supply and demand to recognise that time is always a factor in
these graphs. Along the horizontal axis, the quantity required or delivered is always
measured in units of the good during a particular time span. The forms of both the
supply and demand curves can be influenced by longer or shorter time intervals.

when the covid 19 pandemic took place, there were many spikes in the price of raw
materials and what we will emphasize here is the price of chicken. chicken is one of
the raw materials that experienced an increase in price, this is because the demand
for chicken is high but the supply is not enough so the price of chicken increases. in
this report we will discuss this issue further