Microeconomics: Law of Supply & Demand

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Presentation transcript:

Microeconomics: Law of Supply & Demand

Questions What happens to Supply if prices ? supply

Microeconomics: Law of Supply & Demand Law of Demand

Questions 1. If prices what happens to demand? demand 2. If prices what happens to demand?

Law of Supply & Demand combined: Equilibrium

Question What happens to price if demand is greater( ) than supply? Shortage = Prices will_______? 2. What happens to price if demand is less ( ) than supply? Surplus = Prices will ________?