Determinants of Supply & Demand (Easy)

Economic decisions are made by individuals or the open market.

• Market equilibrium

• Market economy

• Market disequilibrium

• Law of Demand

as prices go up, quantity demanded goes down.

• Law of Demand

• Law of Supply

• Market Equilibrium

• Market Disequilibrium

as prices (profit/revenue) goes up, quantity also goes up.

• Law of Supply

• Law of Demand

• Market Equilibrium

• Market Disequilibrium

a situation in which quantity demanded equals quantity supplied

• Law of Demand

• Law of Supply

• Market Equilbrium

• Market Disequilibrium

surplus and shortage are examples of:

• Market equilibrium

• Market disequilibrium

The prices have gotten too low (price of a certain product) making supply be lower than quantity demanded.

• Shortage

• Surplus

The prices have gotten too high, (too expensive for consumers), forcing the quantity supplied to be higher than the quantity demanded.

• Shortage

• Surplus

If the quantity increases, the curve will shift to the

• left

• right

If the prices rises, the movement will go

• up

• down

If the price decreases, the movement will go

• up

• down