Supply and Demand
Concepts
Demand- the willingness and ability to buy a
good or service
Demand Schedule- how many items the
buyer would purchase at a variety of
prices, at a particular point in time
Concepts
Demand Curve- A graph of the demand
schedule
-Slopes Downward
Law of Demand-inverse relationship
between price and quantity demanded
-More demand lower prices
-Less demand higher prices
Concepts
Supply- the ability to provide (sell) a good or
service
Supply Schedule- number of items offered
for sale at various prices, at a particular
point in time
Concepts
Supply Curve- a graph of the supply
schedule
-Slopes Upward
Law of Supply
Equilibrium Price- the market price
-Supply and demand curves intersect
Demand Schedule
Point
Price ($)
Demand (Q)
1
9
1
2
7
3
3
5
5
4
3
7
5
1
9
Supply Schedule
Point
Price ($)
1
1
Supply Offered
(Q)
1
2
3
3
3
5
5
4
7
7
5
9
9
Demand Schedule
Buyer
Price
Demand
1
10
0
2
8
1
3
6
2
4
4
5
5
2
6
Supply Schedule
Seller
Price
Supply Offered
1
1
1
2
2
5
3
4
7
4
5
10
5
6
12