What is demand in

economics?
The willingness and
ability to buy a good
at various range of
prices at a given
period of time

Law of
demand
There is
always an
inverse
relationship
between the
price of a
good and its
quantity
demanded
Ceteris
paribus.

What is supply in
economics?
Supply refers to the
quantity
of
a
particular good or
service
that
a
producer is willing
and able to provide
to the market at a
range of prices in a
given period of time.

Law of supply
There is a
direct
relationship
between the
price of a
good or
service and
the quantity
supplied
Ceteris
paribus.

Equilibrium
The market
reaches an
equilibrium
price and
quantity
where the
demand curve
and supply
curve meets
each other.

 An increase in demand is
determined by a shift in the
demand curve towards right
or outward.
A decrease in demand is
determined by a shift in the
demand curve towards left or
inward.

Non-price
determinants of
demand:
-Incomes of
consumers.
-Prices of
substitute and
compliment goods
-The expectations
of consumers of
future prices or
future incomes.
-Tastes and
preferences
-Size of the market

 An increase in supply is
determined by a shift in the
supply curve towards right or
outward.
A decrease in supply is
determined by a shift in the
supply curve towards left or
inward.

Non-price
determinants of
supply:
-Technology
-Other related
goods prices
-Resource costs
-Taxes and
subsidies
-Expectations of
producers of
future prices
-Size of the
market
- Changes in
opportunity costs.