The laws of demand and supply, the causes of shifts, and how markets reach equilibrium price.
Markets bring buyers and sellers together. Price is set where demand meets supply.
Demand and supply
- Demand slopes downward: as price falls, quantity demanded rises.
- Supply slopes upward: as price rises, quantity supplied rises.
A change in price causes a movement along the curve; a change in any other factor causes a shift of the whole curve.
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