Supply and

Demand

Price

Amount at which a good/service will be

sold in a market

Supply

How much of a good/service a producer is

willing and able to produce at a given price

-Seller’s Market

Dollars

Quantity

$10.00

$20.00

$30.00

$40.00

100 200 300 400 500

Supply

Demand

An individual’s need/want for a

good/service at a given price

-Buyer’s Market

Dollars

Quantity

$10.00

$20.00

$30.00

$40.00

100 200 300 400 500

Demand

Law of Demand

As the price of a good/service

decreases, the demand of that

good/service will increase.

Law of Supply

As the price of a good/service

increase/decreases, the supply of that

good/service will also increase/decrease.