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A win-win result
While buyers wish to pay as low a price as possible, sellers wish to charge as high a price as possible. When supply is stable, price quickly reaches an [[Equilibrium price|equilibrium]] where ''bids'' and ''offers'' match.
While buyers wish to pay as low a price as possible, sellers wish to charge as high a price as possible. When supply is stable, price quickly reaches an [[Equilibrium price|equilibrium]] where ''bids'' and ''offers'' match.
What makes a [[market economy]] interesting is that the economic pressure of increased demand stimulates suppliers to increase their output of goods and services. Initially, this increased output results in proportionally higher sales at the current price. As demand is satisfied, however, price tends to fall.
The results of all this are:
*more goods and services produced
*more profits for suppliers
*lower prices for buyers