Supply and Demand in Microeconomics

In everyday life, there will be supply and demand in the fulfillment in a human's needs. The interaction of demand by consumers and supply by producers occurs in a market. In a market, a consumer makes a demand to meet their daily needs. The demand made by consumers is their way to obtain utility where consumers indeed have to spend according to their income. A producer on the other hand will sell their goods and/or services in a certain quantity and price so that the producer will gain a profit that they hope for. Based on the interaction of demand by consumers and supply by producers, a price agreement can finally be determined so that market prices and the number of products traded are formed.