What system connects the selling price of goods and the number of goods available in the market?

The system that connects the selling price of goods and the number of goods available in the market is known as supply and demand. This fundamental economic principle describes how the quantity of a product or service that producers are willing to sell (supply) interacts with the quantity that consumers are willing to purchase (demand) at various prices.

When demand for a good increases while supply remains constant, prices tend to rise, as more consumers are competing for the same number of goods. Conversely, if supply increases and demand remains constant, prices tend to fall, as there are more goods available than consumers are willing to buy. This interaction determines the market equilibrium, where the quantity supplied equals the quantity demanded at a particular price.

Market structure refers to the organizational characteristics of a market, such as the number of firms and the nature of competition but does not directly link prices with supply levels. The supply chain pertains to the entire system of production and delivery processes that get goods to consumers but does not directly address the pricing aspect. Price elasticity refers to how sensitive the quantity demanded or supplied is to a change in price but does not encompass the overall relationship between supply and demand. Therefore, the concept of supply and demand accurately captures the connection between prices and the availability of