Difference Between Demand and Supply

In this post you will come to know about the two vital forces of an economy i.e., demand and supply.Firstly one should know what is demand and supply.When we talk about demand ,it represents the customer desire for a particular product and which is backed by ability and willingness to buy the product. The quantity of the commodity being demanded at a particular price, i.e. the equilibrium between quantity demanded and price, is demand for a particular product.Demand curve is an indicator of inverse relationship between price and quantity demand.Now what is supply when we talk of supply it is product and service offered by the producers at a particular price to the customers.The quantity of the product is supplied at a particular price i.e. the equilibrium between quantity supplied and price is known as the supply of that commodity or service. It represents the firm.Supply curve represents direct relationship between price and quantity supplied.

Differences

Basis	Demand	Supply
Definition	Demand is the quantity of a commodity or a service that consumer are willing and able to buy at various prices over a given period of time. It refers to a consumer's desire and willingness to pay a price for a specific good or service.	Supply is the amount of a product producers are willing and able to produce with available resource and sell it at certain price.
Curve	Demand curve is downward sloping.	Supply curve is upward sloping.
Relationship with price	With an increase in price the demand decreases and vice versa i.e., there exists indirect relationship.	Supply increases along with the increase in price. So there is a direct relationship.
Factors	Product own price, price of  complementary goods, price of related goods, personal disposable income, tastes or preferences and consumer expectations about change in  future prices and income.	Product own price, price of related goods, technology used, price of inputs, expectations, number of suppliers,means of transportation and communication,taxationpolicy and government policies and regulations
Representation	Demand represent the consumer.	Supply represent the firm.
Function	QD = f(P, Prg, Y) Where, Qd = quantity demanded, P   =  price of the good, Prg=price of  related good Y = income.	QS= f(P, Prg, S) Where, Qs = Quantity Supplied P   = price of the good, Prg= price of related good  S   =number of producers.
What does Law states	The law of demand states that keeping all other factors as constant, the rise in the price of a good will lead to decrease in the demand and vice versa.	The law of supply states that the higher the price the higher   the quantity supplied. This is because a higher price allows the supplier to get increased revenues, giving him capital to produce more.

Supply and demand are two sides of a same coin and both are interlinked. Increase or decrease in either one directly affects the other. There are certain aspect of  supply and demand model and the model works accordingly. They are: if demand increases and supply remains unchanged,it leads to excess demand and competition among buyers which raises the price then it leads to higher equilibrium price and higher quantity, if demand decreases and supply remains unchanged, then it create excess supply at old equilibrium price this lead to competition among sellers which reduces the price.Decrease in price leads to rise in demand and fall in supply but as supply is constant it leads to lower equilibrium price and lower quantity demanded, if demand remains unchanged and supply increases, then it leads to lower equilibrium price and higher quantity and if demand remains unchanged and supply decreases, then it leads to higher equilibrium price and lower quantity.

Look at it in this way, if a producer of chocolate produces 10 chocolate to sell and the people who wishes to buy the chocolate are 20. This will cause shortage of chocolate, allowing the producers to increase the price of the chocolate. But as the price rises, fewer people will opt to buy the chocolate, which will decrease the number of buyers for the chocolate. Now taking the same example into consideration, let’s change the number of the buyers to 5, there are 10 chocolate which were produced and only 5 buyers for the chocolate, the seller will reduce the price of the remaining chocolate in order to try and convince people to buy it.