Supply and Demand
- Demand - the amount that consumers are willing and are able to buy at any given price.
- Supply - the amount sellers are willing to offer for sales of any given price.
Supply graph analysis
- The higher the price, the more a business will be happy to supply
- As price rises the quantity supply increases.
- The supply line only goes upwards in a diagonal shape.
Demand graph analysis
- As price falls demand increases.
- Demand always go downwards in a diagonal shape.
- When there is demand for a product, which is greater than supply.
- When a surplus exists, prices will tend to fall.
- where the supply and demand for a product cross
- when a business is willing to buy…