Demand & Supply: Demand Curve/Supply Curve
Demand Schedule
As we know, in normal circumstances, the consumers will demand more as the price of a particular product goes down. Economists gather information from the market about demand of goods and services and enter the data in a demand schedule. An example of a demand schedule is given below.
Demand For Apples
| Price | 1 |
2 |
3 |
4 |
5 |
|---|---|---|---|---|---|
| Quantity Demanded | 50 |
40 |
30 |
20 |
10 |
Demand Curve
From the above demand schedule, we can see that the quantity demanded by the consumers goes down as the price goes up. This can be shown by a grapical representation known as Demand Curve.
Supply Schedule
As we know, in normal circumstances, the producers/suppliers will produce and supply more as the price of a particular product goes up and vice-versa. Economists gather information from the market about supply of goods and services and enter the data in a supply schedule. An example of a supply schedule is given below.
Supply of Apples
| Price | 1 |
2 |
3 |
4 |
5 |
|---|---|---|---|---|---|
| Quantity Supplied | 10 |
20 |
30 |
40 |
50 |
Supply Curve
From the above supply schedule, we can see that the quantity supplied by the producers/suppliers goes up as the price goes up. This can be shown by a grapical representation known as Supply Curve.
Market Equilibrium
Market equilibrium is where the quantity demanded equals the quantity supplied. This is the poit at which demand curve meets the supply curve.
In the above diagram, the equilirium price is 3 and the equlibrium quantity demanded and supplied is 30.
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