The theory of supply and demand in economics, is a description of the relationships in the market, between prospective buyers and sellers of a currency. The supply and demand model is used to determine the prices and quantities sold in the market. This model is very important for conducting forex trading analysis of the behavior and interactions of buyers and sellers. It is also used as a starting point for various models and theories about the creation of other currency chats. This model estimates that in a competitive market, prices will function as a counterweight between the demand demanded by consumers and those offered by producers, thus creating an economic balance between the price of currency movements. This model accommodates the possibility of factors that can change balance, which will then be displayed in the form of a shift from demand or supply.
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