Demand and Supply Curves

  • Demand curve slopes downward (negative relationship with price).
  • Supply curve slopes upward (positive relationship with price).
  • The point where they intersect is called the Equilibrium Point – the market price where quantity demanded equals quantity supplied.

Illustration (conceptual):

  • If demand > supply → shortage → prices rise.
  • If supply > demand → surplus → prices fall.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *