Supply and Demand

Supply and Demand Supply – amount of goods/services available to buy Demand – the amount of a good/service consumers are willing to buy

Supply and Demand Curve

Demand The quantity of a good or service that consumers are willing and able to but at a specific price Every consumer has different demands As the price of a good or service increases, the demand will drop The opposite is also true

Conditions that create demand Awareness of product/service Ample supply Reasonable and competitive prices Accessibility

Factors that Affect Demand Change in consumer income Change in consumer tastes Change in the expectations of future conditions Change in population

Supply The quantity of a good or service that businesses are willing and able to provide within a range of prices people are willing to pay As the prices increase, suppliers are more willing to offer more products/services

Conditions that affect supply A change in the number of producers of the product/service The price of the related goods A change in technology A change in expectations A change in the costs of production

Price Determined by many factors, including supply and demand Prices tend to fluctuate because demand and supply are constantly changing Price is also influenced by the cost of producing the good or service Competition also influences price