Supply and demand Overview

Ted Black

Market Structure

Economics

Interactive Tutorial

Students are expected to gain an appreciation of the interaction of supply and demand. The behavior of producers is reflected in the upward sloping supply function and, consumer behavior is depicted with the downward sloping demand curve. A set of parameters may be used to specify shifts in these functions and, their impacts lead to different market outcomes. The following list enumerates several specific subsidiary goals of this section: determination of equilibrium price and quantity; factors that shift the curves and; the consequences of changes in supply and demand on equilibrium price and quantity.