Economists study the decision-making tendencies of consumers and producers and how their decisions affect the allocations of goods and services in a society.
There are two truisms most economists accept as the basis of explaining consumer and producer decision-making: the law of demand and the law of supply. The law of demand explains how price determines the quantity (of a good) consumers are willing to buy. The law of supply explains how price determines the quantity (of a good) that producers are willing to sell. After understanding these two laws, demand and supply, and their caveats, you will have an intuitive understanding of how market forces work.
(A. What determines how much we’re willing to buy?) Forward ->