Demands and Supply

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is defined as the amount of goods or services that a producer is willing to produce at a given price level. Market supply is the sum of all individuals' supply schedule. The Law of Supply states that when the price increases, then quantity supplied would increase, ceterius paribus and vice versa; it means that price and quantity supplied and price is in a positive relationship. Demand and Supply are the most important terms in Economics. When demand and supply curve intersect with each other, the intersection point indicates the equilibrium price and quantity, in which quantity demanded and supplied are equal at a specific price level.
In general, economists would use demand and supply diagram to illustrate the relationship between demand and supply and demonstrates how changes of endogenous and exogenous factors would affect their relationship. In the X-Y axis diagram, demand curve is downward sloping, which implies the negative relationship of quantity demanded and price. On ...

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