Supply and Demand is a fundamental economic concept that describes how the availability of a product or service (Supply) and the desire for that product or service (Demand) interact to determine its price. When supply exceeds demand, prices tend to fall, while prices rise when demand exceeds supply. This relationship helps to balance the market. In a competitive market, producers aim to meet consumer demand while maximizing their profits. Changes in factors like consumer preferences, production costs, or external events can shift supply and demand curves, leading to fluctuations in prices and quantities available in the market.