Can You Explain Supply And Demand Diagrams?

Question

Can You Explain Supply And Demand Diagrams?

2 Answers

Answer Question

Answer 1

Supply and demand curves are important curves in economics, and in other relevant fields. I am giving a link where the graph is available which is very important to understand the behavior of demand and supply. Demand curve is usually downward sloping which means that with the increase in the prices of the products, quantity demanded of the products is decreased. This means that price and quantity are inversely related with each other. On the other hand, supply curve is upward sloping because when prices are increased then demand decreases and excess supply is produced in the economy. In this way in the demand and supply diagram, demand is downward and supply is upward sloping.

Diagram

Answer 2

The equilibrium between demand and supply happens when the supply of the products in the economy gets equal to the demand of the products. As a result neither the extra products are left nor the reduction occurs. Equilibrium point is considered as a desirable in equilibrium the inefficiency of allocation of resources is evidepoint because the allocation of goods at this point is considered right. In the case of disturbancent. You must know that equilibrium of supply and demand is not possible in the real world and it is the ideal or desirable level.