2. SLIDESMANIA.COM
The law of supply and demand is one of the basic laws,
ties into almost all economic principles. People’s
willingness to supply and demand a good determines the
marketequilibriumpriceorthepricewherethequantity
of the good that people are willing to supply equals the
quantitythatpeopledemand.
3. SLIDESMANIA.COM
Supply
The law of demand
states that if all
other factors remain
equal, the higher the
price of a good, the
fewer people will
demand that good.
The higher the price,
the lower the
quantity demanded.
The law of supply
demonstrates the
quantities sold at a
specific price.
The higher the price,
the higher the
quantity supplied.
Demand
5. SLIDESMANIA.COM
Equilibrium Price, also called a market-clearing price.
It is the price at which the producer can sell all the
units he wants to produce, and the buyer can buy all the
unitshewants.
