Supply and Demand is a fundamental economic concept that describes how the availability of a product or service (supply) interacts with the desire for that product or service (demand). When supply exceeds demand, prices tend to fall, encouraging more consumers to buy. Conversely, when demand exceeds supply, prices usually rise, prompting producers to create more of the product. This relationship helps determine the market price and quantity of goods sold. For example, if apples are in high demand but there are few available, the price of apples will increase. Understanding this balance is crucial for businesses and consumers alike.