Understanding the Laws of Demand and Supply are crucial for you understanding the workings of any market in an economy or the entire economy as one gigantic market. The interaction of these laws establish price and output levels of of the goods and services exchanged in these markets. These prices and output levels will be altered anytime any of the non-price market forces that influence demand and supply change. Everyday in the news are examples of market behavior and the forces establishing prices and output level. Frequent examples are found in commodity, agricultural, and financial markets. Prices in these markets often change inter-day.

What is demand supply in a market by giving an example of these laws at work? Numerous examples are found in newspapers and on-line everyday. As examples, what are the determinants of demand and supply that result in the current price of gasoline at the pump or shrimp in the seafood department of your grocery store?