Supply and Demand
In This Chapter
- Understanding the supply and demand model
- Steps to construct a demand curve and a supply curve
- Identifying the equilibrium point of supply and demand
- The effect of external factors on the supply and demand curves
- Calculating the elasticity of demand and supply
Supply and demand is a concept that most people understand intuitively because they have a lot of experience buying products they need and want. When your supermarket has a large supply of your favorite crackers, they will mark down the price to sell their inventory. When the store has difficulty getting a supply of your popular cracker brand, ...