0
Think of a normal X-Y graph. On the Y-axis is price, and on the X-Axis is quantity. Demand is generally a downward sloping line (or curve) and supply is generally an upward sloping line (or curve).
Here is a basic example that I made: see link below
Note that supply and demand intersect - this point is known as the market equilibrium because quantity supplied equals quantity demanded.
Still curious? Ask our experts.
Chat with our AI personalities
Ross
Fran
Steve
Add your answer:
Earn +20 pts
Illstrurate te effect od subsidy in a market by using a demand and a supply diagram?
use a demand and supply diagram to illustrate the effect of a subsidy.
Why do the prices of fresh vegetables fall when they are in season and draw supply and demand diagrams to illustrate?
It is supposed to be the optimal meeting of demand and supply. There is a high demand for fresh vegetables, which are flavorful and healthy. There is an equally high supply. Buyer and producer each meet their needs. Prices go up if supply is low, demand high. Prices go further down if supply is high, demand low.
In an aggregate demand-aggregate supply diagram what will equal decreases in government spending and taxes do?
No effect. Spending will decrease Aggregate Demand, lower taxes will raise Aggregate Demand
Demand rises and supply is constant?
No. If demand rises, then supply falls. Transveresly, if demand falls, then supply rises.
What happens if there is not enough supply for the demand?
If there is not enough supply for the demand, the demand won´t be able to buy the supply
