Demand - The quantity of a particular good or service that consumers are willing and able to buy at a given price. , Supply - The quantity of a particular product that producers are able and willing to make available for sale at a given price. , Law of Demand - Principle stating that when the price of a product goes down, demand will generally go up. The inverse is true as well. , Law of Supply - Principle stating when the price of a product goes up the supply will generally go up. The inverse is true as well. , Equilibrium - The price where the quantity demanded is equal to the quantity supplied. At this price, consumers are willing to buy the same quantity of product as producers are willing to make. , Surplus - this occurs when the supply is greater that demand. As a result prices tend to fall, Shortage - this occurs when demands exceed supply. As a result prices tend to rise. ,

Supply & Demand

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