Understanding Supply and Demand in Markets

Demand

Quantity consumers are willing to purchase at a price.

Law of Demand

As price increases, demand decreases; vice versa.

Supply

Quantity businesses are willing to sell at a price.

Law of Supply

As price increases, supply increases; vice versa.

Market Equilibrium

Point where demand and supply curves intersect.

Price Mechanism

Process by which prices adjust based on supply and demand.

Demand Curve

Graph showing relationship between price and quantity demanded.

Supply Curve

Graph showing relationship between price and quantity supplied.

Equilibrium Price

Price at which quantity demanded equals quantity supplied.

Equilibrium Quantity

Quantity at which demand equals supply at equilibrium price.

Graph Construction

Creating visual representation of supply and demand data.

Blueberries Example

Illustrates demand and supply changes with price variations.

Consumer Demand

Desire for goods/services at various price levels.

Seller Supply

Willingness of sellers to offer goods/services at prices.

Price Level

Specific cost at which goods are sold.

Quantity Supplied

Amount of goods sellers are ready to sell.

Quantity Demanded

Amount of goods consumers are ready to buy.

Graph Intersection

Point where supply and demand curves meet.

Market Forces

Economic factors affecting supply and demand.

Price Adjustment

Changes in price based on market conditions.

Demand Shift

Change in demand due to external factors.

Supply Shift

Change in supply due to external factors.