Supply and demand curves are super important for understanding how markets work. Let’s break it down:
Supply Curve: This line shows how much of a product sellers are ready to offer at different prices. When prices go up, sellers usually want to make more of that product.
Demand Curve: This line shows how much buyers want to purchase. When prices go down, people generally want to buy more.
When the supply curve and the demand curve cross each other, that point is called the equilibrium price.
This is where the amount of product supplied matches the amount people want to buy.
It’s all about finding the right balance!
Supply and demand curves are super important for understanding how markets work. Let’s break it down:
Supply Curve: This line shows how much of a product sellers are ready to offer at different prices. When prices go up, sellers usually want to make more of that product.
Demand Curve: This line shows how much buyers want to purchase. When prices go down, people generally want to buy more.
When the supply curve and the demand curve cross each other, that point is called the equilibrium price.
This is where the amount of product supplied matches the amount people want to buy.
It’s all about finding the right balance!