supply and demand

• definition of supply ?

  Definition: the amount of a product that consumers are willing and able to purchase at any given price.

  The law of demand states: the higher the price, the lower the quantity demanded; and the lower the price, the higher the quantity demanded.
• definition of demand ?

  Definition: the amount of a product which suppliers will offer to the market at a given price.

  The law of supply states: all else equal, an increase in price results in an increase in quantity supplied.
• FACTORS THAT CAUSE THE DEMAND CURVE TO

  SHIFT - PASIFIC

  P - popular

  A- Advertising

  S- Substitutes

  I- Income

  F- Fashion and taste

  I- Interest rates

  C- Compliments
• FACTORS THAT CAUSE THE SUPPLY CURVE TO

  SHIFT - PINTSWC

  P- Productivity

  I- Indirect Taxes

  N- Number of firms

  T- Technology

  S- Subsidies

  W- Weather

  C- Contribution
• definition of equilibrium price ?

  In a free market demand and supply equal the equilibrium price, this is the price where quantity demanded is equal to quantity supplied.