Scribd Logo
Upload

Welcome to Scribd!

  • 137 views

    Law of Supply and Demand

    Uploaded by

    Joyce Anne Garduque
    Supply and demand are economic forces that determine what suppliers are willing to produce and what consumers are willing to purchase at a given price. Supply refers to how much of a product suppliers are willing to make available, while demand refers to how much consumers are willing and able to purchase. These forces interact to determine the equilibrium price - the price at which the quantity supplied equals the quantity demanded. Supply curves typically slope upward as suppliers will provide more of a product at a higher price, while demand curves slope downward as consumers demand more of a product at a lower price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Law of Supply and Demand

    Uploaded by

    Joyce Anne Garduque
    137 views2 pages
    Supply and demand are economic forces that determine what suppliers are willing to produce and what consumers are willing to purchase at a given price. Supply refers to how much of a product suppliers are willing to make available, while demand refers to how much consumers are willing and able to purchase. These forces interact to determine the equilibrium price - the price at which the quantity supplied equals the quantity demanded. Supply curves typically slope upward as suppliers will provide more of a product at a higher price, while demand curves slope downward as consumers demand more of a product at a lower price.

    Original Description:

    The Demand curve and supply curved

    Original Title

    LESSON_2

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Supply and demand are economic forces that determine what suppliers are willing to produce and what consumers are willing to purchase at a given price. Supply refers to how much of a product suppliers are willing to make available, while demand refers to how much consumers are willing and able to purchase. These forces interact to determine the equilibrium price - the price at which the quantity supplied equals the quantity demanded. Supply curves typically slope upward as suppliers will provide more of a product at a higher price, while demand curves slope downward as consumers demand more of a product at a lower price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    137 views2 pages

    Law of Supply and Demand

    Uploaded by

    Joyce Anne Garduque
    Supply and demand are economic forces that determine what suppliers are willing to produce and what consumers are willing to purchase at a given price. Supply refers to how much of a product suppliers are willing to make available, while demand refers to how much consumers are willing and able to purchase. These forces interact to determine the equilibrium price - the price at which the quantity supplied equals the quantity demanded. Supply curves typically slope upward as suppliers will provide more of a product at a higher price, while demand curves slope downward as consumers demand more of a product at a lower price.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    DEMAND AND SUPPLY

    Supply and demand are economic are the economic forces of the free market that
    control what suppliers are willing to produce and what consumers are willing and
    able to purchase.
    The term supply refers to how much of a certain product, item, commodity, or
    service suppliers are willing to make available at a particular price. Demand refers
    to how much of that product, item, commodity, or service consumers are willing
    and able to purchase at a particular price.
    In other words, supply pertains to how much the producers of a product or service
    are willing to produce and can provide to the market with limited amount of
    resources available. Whereas, demand is how much of that product or service the
    buyers desire to have from the market.

    Law of Supply and Demand


    Demand and supply play a key role in setting price of a particular product in the
    market economy. Since demands of buyers are endless, not all that is demanded
    can be supplied due to scarcity of resources. This is where the relationship of
    demand and supply plays a significant role, allowing efficient allocation of
    resources and determining a market price for the product or service, known as
    equilibrium price. This price reflects the price at which suppliers are willing to
    supply and the buyers are willing to buy from the market.
    The mechanism of determining market price through demand and supply can be
    better understood by observing the market economic theories.

    Demand Curve
    The quantity of a commodity demanded depends on the price of that commodity
    and potentially on many other factors, such as the prices of other commodities,
    the incomes and preferences of consumers, and seasonal effects. In basic
    economic analysis, all factors except the price of the commodity are often held
    constant; the analysis then involves examining the relationship between various
    price levels and the maximum quantity that would potentially be purchased by
    consumers at each of those prices. The price-quantity combinations may be
    plotted on a curve, known as a demand curve, with price represented on the
    vertical axis and quantity represented on the horizontal axis. A demand curve is
    almost always downward-sloping, reflecting the willingness of consumers to
    purchase more of the commodity at lower price levels. Any change in non-price
    factors would cause a shift in the demand curve, whereas changes in the price of
    the commodity can be traced along a fixed demand curve.

    Supply Curve
    The quantity of a commodity that is supplied in the market depends not only on
    the price obtainable for the commodity but also on potentially many other factors,
    such as the prices of substitute products, the production technology, and the
    availability and cost of labor and other factors of production. In basic economic
    analysis, analyzing supply involves looking at the relationship between various
    prices and the quantity potentially offered by producers at each price, again
    holding constant all other factors that could influence the price. Those price-
    quantity combinations may be plotted on a curve, known as a supply curve, with
    price represented on the vertical axis and quantity represented on the horizontal
    axis. A supply curve is usually upward-sloping, reflecting the willingness of
    producers to sell more of the commodity they produce in a market with higher
    prices. Any change in non-price factors would cause a shift in the supply curve,
    whereas changes in the price of the commodity can be traced along a fixed supply
    curve.

    Supply & Demand means the amount of goods or services companies are willing to
    produce and the amount of goods or services that consumers are willing to
    purchase.

    You might also like