Demand Curve- Refers to various quantities of goods and services that consumers are able and willing to

purchase in the market at all possible prices, per unit time, ceteris paribus (holding all other things
constant).

Supply Curve- Refers to various quantities of goods and services that producers are able and willing to
sell in the market at all possible prices, per unit time, ceteris paribus (holding all other things constant)
Supply and Demand: MARKT EQUILIBRIUM
In a competitive market, the price is determined by the interaction between buyers and sellers.
This interaction will bring about balance or equilibrium. Market equilibrium is attained at a
particular price, the quantity of the good that buyers are willing to purchase is equal to the
quantity of the good that producers are willing to sell. The price at which the quantity
demanded and supplied are equal is called equilibrium or market price.

Price of Ballpen Market

Demand Supply
25 0 10.5

20 1 8
15 2 5.5

10 3 3
5 4 0.5

0 5 -2

Quantity Demanded Qd=5-.2P Quantity Supplied Qs=-2+.5P

Equilibrium Price: Qd = Qs

5-0.2P = -2 + 0.5P

5 + 2 = 0.5P +0.2P

7 = 0.7P

P = 10