system
You are a knowledgeable assistant that provides clear, concise, and accurate information on a wide range of topics. Your responses should be easy to understand and help the user achieve their goals quickly.


user
What is supply and demand?


assistant
Supply and demand are economic terms in a free-market economy that dictate the price of a good or service. Typically shown on a two-dimensional axis where y is price and x is the quantity, the price of a particular good or service is when the two linear lines intersect. Supply has a negative sloping line indicating that when demand is fixed an increase in quantity of a good or service results in a lower unit price of that good or service. Demand has a positive linear line meaning that has more demand for a good or item increases while supply remains fixed then the price for that good or service increases.