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Supply and Demand

Author: Kate Eskra

Source: Image of Demand Graph created by Kate Eskra, Image of Demand Shift (Decrease) created by Kate Eskra, Image of Demand Shift (Increase) created by Kate Eskra, Image of Supply Curve created by Kate Eskra, Image of Supply Curve Shift (Increase) created by Kate Eskra, Image of Supply Curve Shift (Decrease) created by Kate Eskra, Image of Equilibrium created by Kate Eskra

Video Transcript
Terms to Know
Ceteris Paribus

From Latin, meaning, "holding all other things constant."

Demand

The quantity of goods and services that may be purchased at a given time specific to a set income and range of price levels.

Equilibrium

The point at which the quantity supplied at a given quantity price combination equals the quantity demanded; where the supply and demand curves intersect.

Movements Along Supply (Demand) Curve

Demonstrated when the price of the product changes and impacts the quantity supplied (demanded).

Shifting of Demand Curve

Movements that may cause either an increase or decrease in the quantity demanded of a given good or service for a specific price level; the shift occurs due to income or preference changes.

Shifting of Supply Curve

Movements that may cause either an increase or decrease in the quantity supplied of a given good or service for a specific price level; the shift occurs due to more or less resource access, decrease or increase in the price of inputs, or changes in regulation (taxes and subsidies). 

Supply

The fixed quantity of goods and services available for a range of price levels at a set point in time.