SUPPLY AND DEMAND CURVES
SUPPLY AND DEMAND CHART
Supply Curve:
• Slopes upward to the right
• Why? Producers will produce more if the
price is high- it will increase revenue
• Called Upward Sloping
• It can shift to the right (lower price, more quantity)
• Or it can shift to the left (higher price, less quantity)
• The more expensive a product becomes, the more
suppliers are willing to supply it because it is
profitable
DEMAND CURVE
• Demand curve slopes downward
• Why? People have limited resources/income
• The more expensive a good/service becomes, the
less they are able to buy it