As mentioned, production is the supply while consumption is the demand.
Both are variable by changes made from each other. The demand increases
inversely with the price, when the price increases, the demands decreases while
the supply increase along with the price due to the amount of profit the producer
makes per unit.
Combined together in a same
graph, they intersect with each other at a point called an equilibrium which is
a balance between over-supplying and shortage. With over-supplying, the price
must be decreased to restore equilibrium while with shortage, the price is
increased.
Below is a video from YouTube which evaluates further on the demand and supply
curve.
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