Interactive Presentation Slides.pptx

Supply and Demand

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Introduction

Supply

• Amount of a good produced and offered for sale.

• May depend on price

Demand

• Amount of a good consumers want to buy.

• May depend on price.

Graphing Supply

• Supply increases as price increases.

• Supply can shift up or down depending on many factors.
• Number of suppliers, Price, etc.

Graphing Demand

• Demand decreases and price increases.

• Demand shifts up or down depending on many factors.
• Income levels, Consumer preference, etc.

Supply, Demand, and Price

• Where supply and demand meet is the Equilibrium Price.
• Goods produced = Goods bought

• Markets will trend towards the equilibrium to prevent surplus and shortage of goods.

• When supply or demand shift, equilibrium price moves too.

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