What Is the Law of Supply and Demand?

Kapag tumaas ang price taataas din ang supply at

bababa naman ang demand.
 A market-clearing price balances supply and demand, and can be
graphically represented as the intersection of the supply and demand
curves.

Demand is the quantity of consumers who are willing and able to buy products at various prices
during a given period of time. Demand for any commodity implies the consumers' desire to acquire the
good, the willingness and ability to pay for it.

The demand for a good that the consumer chooses, depends on the price of it, the prices of other goods,
the consumer’s income and her tastes and preferences. Whenever one or more of these variables change,
the quantity of the good chosen by the consumer is likely to change as well. If the prices of other goods,
the consumer’s income and her tastes and preferences remain unchanged, the amount of a good that the
consumer optimally chooses, becomes entirely dependent on its price. The relation between the
consumer’s optimal choice of the quantity of a good and its price is called the demand function.

What Is Quantity Demanded?

Quantity demanded is a term used in economics to describe the total amount of a good or service that
consumers demand over a given interval of time. It depends on the price of a good or service in a
marketplace, regardless of whether that market is in equilibrium.
The relationship between the quantity demanded and the price is known as the demand curve, or simply
the demand. The degree to which the quantity demanded changes with respect to price is called
the elasticity of demand.
Supply and demand form the most fundamental concepts of economics. Whether you are an academic,
farmer, pharmaceutical manufacturer, or simply a consumer, the basic premise of supply and demand
equilibrium is integrated into your daily actions. Only after understanding the basics of these models can
the more complicated aspects of economics be mastered.

What Is the Demand Curve?

The demand curve is a graphical representation of the relationship between the price of a good or service
and the quantity demanded for a given period of time. In a typical representation, the price will appear on
the left vertical axis, the quantity demanded on the horizontal axis. 
What Is a Demand Schedule?
In economics, a demand schedule is a table that shows the quantity demanded of a good or service at
different price levels. A demand schedule can be graphed as a continuous demand curve on a chart where
the Y-axis represents price and the X-axis represents quantity.

What is the Law of demand?

The law of demand describes an inverse relationship between price and quantity demanded of a good. If
the price of the good increases, then the demand falls, because the consumer is usually reluctant to spend
more and more money on her purchase. If the price of the good decreases, the demand for the good
increases because with the price being less, the consumer prefers to buy the good.
The Law of Demand, along with the Law of Supply is used to explain how market economies allocate
resources and determine the prices of goods and services in everyday transactions.

Kapag tumaas ang Price bababa ang demand

Kapag bumaba ang price tataas ang demand

Supply is a fundamental economic concept that describes the total amount of a specific good or
service that is available to consumers. Supply can relate to the amount available at a specific price or the
amount available across a range of prices if displayed on a graph. This relates closely to the demand for a
good or service at a specific price; all else being equal, the supply provided by producers will rise if the
price rises because all firms look to maximize profits.

Understanding Supply
Supply and demand trends form the basis of the modern economy. Each specific good or service will
have its own supply and demand patterns based on price, utility and personal preference. If people
demand a good and are willing to pay more for it, producers will add to the supply. As the supply
increases, the price will fall given the same level of demand. Ideally, markets will reach a point
of equilibrium where the supply equals the demand (no excess supply and no shortages) for a given price
point; at this point, consumer utility and producer profits are maximized.
supply is most used to refer to goods, services, or labor. One of the most important factors that affects
supply is the good’s price. Generally, if a good’s price increases so will the supply. The price of related
goods and the price of inputs (energy, raw materials, labor) also affect supply as they contribute to
increasing the overall price of the good sold.
What Is Quantity Supplied?
In economics, quantity supplied describes the number of goods or services that suppliers will produce and
sell at a given market price. The quantity supplied differs from the actual amount of supply (i.e., the total
supply) as price changes influence how much supply producers actually put on the market. How supply
changes in response to changes in prices is called the price elasticity of supply.
Higher prices lead to a higher quantity supplied and vice versa.

What Is a Supply Curve?

The supply curve is a graphic representation of the correlation between the cost of a good or service and
the quantity supplied for a given period. In a typical illustration, the price will appear on the left vertical
axis, while the quantity supplied will appear on the horizontal axis.

On most supply curves, as the price of a good increases, the quantity of goods supplied also increases.
The supply curve will move upward from left to right, which expresses the law of supply: As the price of
a given commodity increases, the quantity supplied increases (all else being equal).

SUPPLY SCHEDULE
A supply schedule is a table that shows the quantity supplied at each price. A supply curve is a graph that
shows the quantity supplied at each price. Sometimes the supply curve is called a supply schedule
because it is a graphical representation of the supply schedule.

The Law of Supply

The law of supply relates price changes for a product with the quantity supplied. In contrast with the law
of demand the law of supply relationship is direct, not inverse. The higher the price, the higher
the quantity supplied. Lower prices mean reduced supply, all else held equal.