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Demand Supply Curve

oboloo Glossary

Demand Supply Curve

The demand-supply curve is an essential tool in economics and business. This graph shows the relationship between the amount of a product that buyers are willing to pay for, and the amount of a product that producers are willing to supply. The demand-supply curve is often used to predict the impact of changes in price on the market. For example, if demand increases, the price will go up. This increase in price incentivizes producers to supply more of the product, expanding the Market. Conversely, if supply increases, there is more competition among businesses, resulting in a decrease in prices. Ultimately, the demand-supply curve allows companies to understand how changes in their own prices or availability might affect their market share.

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