The demand vs supply curve is a graphical representation of the relationship between how much of a product or service consumers are willing to buy, and the amount that businesses can produce at any given price point. In other words, it’s the balance between what people are prepared to pay for something, and what business can provide in return. When graphed out, this creates an upward-sloping line—reaching its peak when the market has settled into equilibrium. This chart illustrates how producers can adjust prices based on market conditions and customer demands, while differentiating between products by their relative supply and demand. The cost of goods is determined when the two curves meet, allowing buyers and sellers to agree on a fair value. Understanding the dynamics of the demand vs supply curve can help businesses make well informed decisions that are beneficial for both parties.