Supply and Demand 101
In #economics, we always talk about supply and demand. They are 2 lines. And usually when they intersect, that is what we call "market equilibrium". That point where the 2 lines meet is the market price and market quantity.
#market #demand #supply
In #economics, we always talk about supply and demand. They are 2 lines. And usually when they intersect, that is what we call "market equilibrium". That point where the 2 lines meet is the market price and market quantity.
#market #demand #supply
But what these lines share, is the relationship between both parties. When prices are low, buyers will demand more. When prices are high, buyers will demand less.
It is the opposite for sellers. When prices are high, sellers want to sell more. When prices are low, sellers want to sell less.
The buyer's line shows at what price, how much the buyer wants to buy. The seller's line shows at what price, how much the seller wants to sell.
When the lines meet, it is the specific price where both buyers and sellers are comfortable with buying and selling at.
When the lines meet, it is the specific price where both buyers and sellers are comfortable with buying and selling at.
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