SUPPLY AND DEMAND

SUPPLY and DEMAND

How can we simplify supply and demand?

This graph shows a typical Supply Curve for a mock product or service. If demand for the product increases, the supply curve shifts to the right. if demand decreases, the supply curve shifts to the left, indicating that producers are willing to supply less of the product at each price point.

SUPPLY CURVE SHIFTS

Supply curveQuantity (Q) Price (P) 0 $4 2 $7 4 $10 6 $13 8 $16

Demand Increases0 $5 2 $8 4 $11 6 $14 8 $17

Demand Decreases0 $3 2 $6 4 $9 6 $12 8 $15

This graph shows a typical Demand Curve for the same mock product or service. If demand for the product increases, the demand curve shifts to the right. if demand decreases, the demand curve shifts to the left, indicating that people are willing to pay less for the product at each price point.

DEMAND CURVE SHIFTS

Demand CurveQuantity (Q) Price (P) 0 $10 2 $7 4 $4 6 $1 8 $0

Demand Decreases0 $9 2 $6 4 $3 6 $0 8 $-1

Demand Increases0 $11 2 $8 4 $5 6 $2 8 $1

This graph shows the point of equilibrium between the Supply and Demand curves for the same mock product or service. At this point, the quantity supplied and quantity demanded is equal, This is considered the point of equilibrium between Supply and Demand.

Equilibrium Point Quantity (Q) Price (P) 4 $7

SOURCES:

https://www.economicshelp.org/blog/1811/markets/diagrams-for-supply-and-demand/ https://www.britannica.com/topic/supply-and-demand