The Economic Principles of: Supply and Demand represents willingness to sell at certain price relationship between price and the quantity supplied (actually sell) Demand represents willingness and ability to buy at a certain price relationship between price and quantity demanded (actually buy)

Supply and Demand Curve Supply Curve Law of Supply the higher the price of the product, the more the producer will supply Positive relationship with price, the curve is upward sloping Demand Curve Law of Demand the higher the price of the product, the less the consumer will demand Negative relationship with price, the curve is downward sloping

Supply & Demand Curve ….. Equilibrium is reached when both curves intersect. At this point, the price is just high enough so that the quantity people want to buy is equal to the quantity business want to sell the quantity demanded = the quantity supplied

Supply and Demand Curve http://en.wikipedia.org/wiki/