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Ross said that everything interesting in finance is going on behind the supply and demand curves....

Ross said that everything interesting in finance is going on behind the supply and demand curves. What did he mean? In standard finance, what does a supply curve look like (slope, for example)? What does a demand curve look like? Why?

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Answer #1

Answer - Every aspect in the finance and economics revolves around the concept of demand and supply as the transactions of goods market or the securities market revolve arounfd these.

The supply curve presents the positive correlation between the price of the product or the service and the willingness to supply. The curve is upward sloping and hence denotes the positive relation between the price and the supply

On the other hand , the demand curve shows the negative correlation between the price and the demand . Because of this inverse relationship , the slope of demand curve is negative and it is a downward sloping curve.

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