Demand/supply and demand/supply curves

Define demand

Demand is how much consumers are willing and able to purchase of a product at a given price

What happens to demand as prices rise

Demand falls as fewer people are willing and able to purchase the product

What happens to demand as prices fall

Demand increases as more people are willing and able to buy the product

What does this graph represent demand for

Snacks

What does this graph represent the demand for

Luxury goods

What does this graph represent the demand for

Essential items

Define supply

How much producers are willing and able to produce of a product at a given price

What happens to supply As prices fall

It also falls as firms are less willing and able to produce product

What happens to supply As prices rise

It also rises as firms are more willing and able to produce product

What causes supply curves to shift

• things become easier to produce

• Changes in production cost

• Taxes

• Subsidys

What kind of curve is this

Supply curve

What do supply curves represent

The quantity of goods able to be produced by producers at a given price

State the logic chain for supply

Higher price, more profit,more incentive to produce