About This Chapter
Demand, Supply and Market Equilibrium
Supply and demand is the very heart of economics. In business, there is a constant battle to keep supply and demand in balance. You likely know that if the balance is disrupted that it can cause major issues. Think about what would happen if the demand for bananas suddenly went up, but the supply of bananas didn't increase. It would mean a major setback for the banana companies because there would be no way they could provide enough bananas for all the people who wanted to buy them. Our lessons will cover the ideas of supply and demand, so you can better understand how businesses avoid disasters that can occur when the system is out of balance.
Market demand represents the need for a product. Learn how businesses project what the market demand will be so that they can keep their production on track and not produce too much or too little of their products. Study demand schedules and find out what purpose they serve in the process of meeting market demand.
Market supply is the amount of products a business has available. As you know, supply goes hand-in-hand with demand. Our lessons will show you how a supply schedule is created and how it is used to ensure a good supply and demand balance.
Charts, graphs and other measurement processes are used to help businesses stay on track with supply and demand. As you watch the lessons, you'll learn about the Law of the Downward Sloping Demand Curve. See what happens when demand curves are downward sloping. Along the same lines, you'll learn about upward sloping supply curves and find out what it means when this occurs. Let our lessons explain these concepts to you through easy-to-understand, everyday examples. Also find out what market equilibrium is and learn how to calculate it. Thanks for watching!
1. Market Demand Schedule
Demand can often drive the cost up or down for a product or service. In this lesson, you'll discover what demand is, what it looks like, and how market demand schedules are created.
2. Market Supply Schedule
Supply and demand play big roles in the economy. In this lesson, you'll discover what supply is, how we describe it, and how market supply schedules are created.
3. The Law of the Downward Sloping Demand Curve
Discover the relationship between the quantity demanded and price of a good or service in a market. This lesson explains why the demand curve is downward sloping and what factors will lead to a shift in demand.
4. The Upward-Sloping Supply Curve
Discover the relationship between the quantity of a good or service that is produced and its price. This lesson explains the supply side of a market, including the factors that lead to a shift in supply.
5. How to Calculate Market Equilibrium
Supply and demand is an important part of macroeconomics. In this lesson, you'll learn how to calculate the equilibrium price and quantity in a market at the intersection of the supply and demand curves.
6. How Changes in Supply and Demand Affect Market Equilibrium
Learn how the equilibrium of a market changes when supply and demand curves increase and decrease and how different shifts in the curves can affect price.
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Other chapters within the Economics 102: Macroeconomics course
- Scarcity, Choice, and The Production Possibilities Curve
- Comparative Advantage, Specialization and Exchange
- Measuring the Economy
- Inflation Measurement and Adjustment
- Understanding Unemployment
- Aggregate Demand and Supply
- Macroeconomic Equilibrium
- Inflation and Unemployment
- Economic Growth and Productivity
- Money, Banking and Financial Markets
- Central Bank and the Money Supply
- Fiscal and Monetary Policies
- Foreign Exchange and the Balance of Payments
- Inflows, Outflows, and Restrictions
- Studying for Economics 102