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Understanding Economic Systems - Supply and Demand
The document discusses the principles of supply and demand that form the basis of market economies. It defines demand as the quantity of goods or services that consumers are willing and able to buy, and defines supply as the quantity of goods or services that businesses are willing and able to provide. The supply and demand curves graph the relationship between price and quantity, with the supply curve sloping up and the demand curve sloping down. The equilibrium point is where the two curves intersect and price and quantity are in balance.
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Similar to Understanding Economic Systems - Supply and Demand
Understanding Economic Systems - Supply and Demand
- 1. UNDERSTANDING Economic S y st e m s https://flic.kr/p/8VgRyM
- 2.
- 3. https://flic.kr/p/4QAFrr The market economyis based on the principles of supply and demand.
- 4. https://flic.kr/p/mUGBwy DemandThe quantity ofgoods or services that consumers are willing and able to buy.
- 5. https://flic.kr/p/oBTUVy SupplyThe quantity ofgoods or services that businesses are willing and able to provide.
- 6. SupplyGraph Quantity Price The Supply Curve ona graph is ascending. https://flic.kr/p/pTUmqq
- 7. LawofSupply As the priceof a good decreases, the supply of that good will decrease. https://flic.kr/p/pTUmqq
- 8. DemandGraph The Demand Curve ona graph is descending. https://flic.kr/p/pTUmqq Quantity Price
- 9. LawofDemand As the priceof a good decreases, the demand of that good will increase. https://flic.kr/p/pTUmqq
- 10. Equilibrium Where the two curves meet,is the equilibrium point. https://flic.kr/p/pTUmqq Quantity Price
- 11. Surplus When there is moresupply, than quantity demanded, a surplus is created. https://flic.kr/p/pTUmqq Quantity Price
- 12. Shortage When there is lesssupply, than quantity demanded, a shortage is created. https://flic.kr/p/pTUmqq Quantity Price