The common price from consumers (demand) and firms (supply) provides an equilibrium price.
Demand: People/firms/government demand (willingness to buy) goods and services. Demand Schedule: A table showing how much of a good or service consumers will want to buy at different prices. Demand Curve: Is a graphical expression of the demand schedule. Change in Quantity Demanded vs. a change in Demand: Change in quantity demanded--same curve same data but a different price and quantity demanded combination. Change in demand--new curve (shift) new data leads to a change in price. *Determinants caused the change | Supply: People/firms/government supply (produce) goods and services . Supply Schedule: A table showing how much of a good or service firms will want to produce at different prices. Supply Curve: A graphical expression of the supply schedule. Change in Quantity Supplied vs. a change in Supply: Change in quantity supplied--same curve same data but a different price and quantity supplied combination. Change in supply--new curve (shift) new data leads to a change in price. *Determinants caused the change |