Graphs help us understand how supply, demand, and prices work together.

Demand Curve: This line goes downwards. It means that when the price goes down, people want to buy more.

Supply Curve: This line goes upwards. It shows that when prices are higher, sellers are willing to offer more of a product.

When these two lines meet, that's called equilibrium.

For example, if people want to buy 100 units of a product at $10, and sellers are also ready to supply 100 units at that same price, then$10 is the equilibrium price.

In simple terms, it's where what people want to buy matches what sellers want to sell!