Microeconomics Module

Laws of Demand & Supply

How price coordinates buyers and sellers

Demand is a line of buyers ranked by how much they'd pay for the last item. Supply is the mirror: producers ranked by who can make it cheapest. The equilibrium price is the handshake where the two lines meet — the only price where nobody wants to walk away.

  1. 1
    Law of Demand
    P ↑ ⇒ Qd ↓inverse
  2. 2
    Law of Supply
    P ↑ ⇒ Qs ↑direct
  3. 3
    Equilibrium
    Solve Qd(P*) = Qs(P*) for P*, Q*

PriceQuantityDS
P: ↑·Q: ↓

4 questions · filtered Battle Arena session