supply and demand

SUPPLY AND DEMAND

Law of supply

Law of demand

Higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied.

The higher the price of an item, the less the demand

Burgers supply graph

Burgers demand graph

Ansari, S. (2023, December 13). Supply and demand curves explained. Economics Online. https://www.economicsonline.co.uk/competitive_markets/supply-and-demand-curves-explained.html/

If the line of the graph shifts to the left, it means that it is happening a fall in supply. However, if the graph shifts to the right it is happening a rise in supply.

If the line of the graph shifts to the left, the demand is in fall. While, if the line shifts to the right the demand is rising.

Equilibrium

Equilibrium is the perfect balance between supply and demand.

When a market is in equilibrium means that the quantity supplied is equal to the quantity demanded.