Most questions asked in Economics can be answered by supply and demand. Issues with prices, output, wages, employment, inflation, product availability, product quality, innovation, resource allocation, etc. can be explained by supply and demand.

"Supply and demand provides the answer to most economic questions." What is it about supply and demand that provides the answers to our most pressing economics questions? What does supply and demand represent? Is this market solution the best way to discover prices and allocate resources? Please put some thought into your answers.

150-250

Supply Price ($) P1 ($1) Supply Equilibrium 1 ($2) New Equilibrium P* Price Demand (D2) Demand (D1) Q1 Q2 Quantity