Market forces refer to the economic factors that influence the supply and demand of goods and services in a marketplace. These forces determine how much of a product is available and how much consumers are willing to pay for it. For example, if the demand for electric cars increases, manufacturers may produce more, leading to changes in prices and availability. Supply and demand are the two main components of market forces. When demand exceeds supply, prices tend to rise, encouraging producers to create more. Conversely, if supply outstrips demand, prices may fall, prompting producers to reduce output. Understanding these dynamics helps businesses and consumers make informed decisions.