Demand And Supply Curves
Economics notes
Demand And Supply Curves
➡️ Demand and supply curves are graphical representations of the relationship between the price of a good or service and the quantity of that good or service that is demanded or supplied.
➡️ Demand curves show the quantity of a good or service that consumers are willing and able to purchase at different prices.
➡️ Supply curves show the quantity of a good or service that producers are willing and able to supply at different prices.
➡️ The intersection of the demand and supply curves is known as the equilibrium price, which is the price at which the quantity demanded is equal to the quantity supplied.
➡️ Changes in demand or supply can cause the demand and supply curves to shift, resulting in a new equilibrium price.
How do demand and supply curves interact?
Demand and supply curves interact to determine the equilibrium price and quantity of a good or service. The demand curve shows the quantity of a good or service that consumers are willing to purchase at different prices, while the supply curve shows the quantity of a good or service that producers are willing to supply at different prices. When the demand and supply curves intersect, the equilibrium price and quantity are determined.
What factors can cause a shift in the demand or supply curve?
Factors that can cause a shift in the demand or supply curve include changes in consumer preferences, changes in the price of related goods, changes in the cost of production, changes in the number of buyers or sellers, and changes in government policies.
What is the difference between a change in demand and a change in quantity demanded?
A change in demand is a shift in the entire demand curve, while a change in quantity demanded is a movement along the demand curve. A change in demand is caused by a change in one or more of the factors that influence demand, while a change in quantity demanded is caused by a change in the price of the good or service.