The Laws of Supply and Demand
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From the Microeconomics 101: Supply, Demand & Elasticity curriculum
<h2>Market Equilibrium</h2>
<p>The price of a good is determined where the <b>Supply Curve</b> meets the <b>Demand Curve</b>.</p>
<h3>Definitions:</h3>
<ul>
<li><b>Law of Demand:</b> As price goes up, quantity demanded goes down (Inverse relationship).</li>
<li><b>Law of Supply:</b> As price goes up, quantity supplied goes up (Direct relationship).</li>
</ul>
<p><b>Exam Question:</b> What happens to the equilibrium price if consumer income rises? (Hint: Demand curve shifts right, Price increases).</p>
Try it yourself: Interactive supply and demand graph
Frequently asked about The Laws of Supply and Demand
Market Equilibrium The price of a good is determined where the Supply Curve meets the Demand Curve . Definitions: Law of Demand: As price goes up, quantity demanded goes down (Inverse relationship). Read the full notes above for the details.
The Laws of Supply and Demand is a core topic in Microeconomics 101: Supply, Demand & Elasticity. Most exam papers test it via a mix of definitions, worked examples, and applied problems. The notes above cover the high-yield sub-topics, common pitfalls, and the kind of questions examiners typically set.
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Price Elasticity of Demand (PED)
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