In economics, the demand and supply curve is a graph that shows the relation between the supply of a product or service and its market demand
bounds: [-10, 10, 10, -10]
elements: [
{type: "line",
def: [[4,0], [0, 4]],
att: {label: "X", name: "Supply", strokeColor: "blue", dash: 0}},
{type: "line",
def: [[3,0], [2,8]],
att: {label: "X", name: "Demand", strokeColor: "red", dash: 0}},
]Equilibrium
An equilibrium is where the supply and demand curves intersect. This means that the demand and supply balance out, leading to a stable and self-regulating market
- When supply exceeds demand, prices drop
- When supply trails demand, prices rise
- When the demand price is greater than or equal to the supply price, that means the market is viable and profitable. Customers are willing to pay higher prices