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Transcript

SUPPLY AND DEMAND

LAW OF SUPPLY

LAW OF DEMAND

The supply curve shows the relationship between price and quantity. There is a direct relationship beetween them.

PRIZE QUANTITY

PRIZE QUANTITY

The demand curve shows the relationship between price and quantity. There is a indirect relationship beetween them.

SWEETS SUPPLY CURVE

If the prize decrease from 2 dollars to 1 dollar, the quantity decrease from 300 to 200

SWEETS DEMAND CURVE

If the prize decrease from 2 dollars to 1 dollar, the quantity rise up from 200 to 300

If the demand increased, the supply curve goes to the right ( sellers offered more products, for a higher prize)If the demand decreased, the supply curve goes to the left (sellers offered less products, for less prize)

If the demand increased, the supply curve goes to the right ( consumers buy more products, for a higher prize)If the demand decreased, the supply curve goes to the left (consumers buy less products, for less prize)

EQUILIBRIUM

Point where the supply and demand curves intersects. The quantity supplied is equal to the quantity demanded, because the market prices coincides with the equilibrium point.