Overview
Demand and supply are essential concepts in economics that explain how prices are determined in a market. Demand refers to how much of a product consumers want, while supply refers to how much producers are willing to sell. The interaction between demand and supply establishes the market equilibrium...
Key Terms
Example: The demand for ice cream increases during summer.
Example: The supply of smartphones increases as technology improves.
Example: At $10, the number of shoes demanded equals the number supplied.
Example: A surplus of unsold winter coats at the end of the season.
Example: A shortage of hand sanitizers during a health crisis.
Example: An increase in consumer income can shift the demand curve to the right.
Related Topics
Elasticity
Elasticity measures how much demand or supply changes in response to price changes.
intermediateConsumer Behavior
Consumer behavior studies how individuals make decisions to spend their resources.
intermediateMarket Structures
Market structures analyze different types of markets and their characteristics.
advancedKey Concepts
Law of DemandLaw of SupplyMarket EquilibriumShifts in Demand and Supply