what is supply by mrsmacs


									       What is supply?
             The Law of Supply-
Quantity supplied is directly proportional to price.

Consumers want to pay as little as they can. They
 will buy more as the price drops. Sellers, on the
other hand, want to be able to charge as much as
 they can. They will be willing to make more and
sell more as the price goes up. This way they can
                 maximize profits.
     A Supply Curve
Price of     Number of Widgets
Widgets      Sellers Want to Sell

 $1.00               10

 $2.00               40

 $3.00               70

 $4.00               140
      What is demand?
   Demand is comprised of three things.
              Ability to pay
           Willingness to pay

                The Law of Demand:

Simply put, the higher the price, the lower the demand
   and the lower the price, the higher the demand.
   A Demand Curve

           Number of Widgets
Price of
             People Want to

$1.00            100
$2.00            90
$3.00            70
$4.00            40
Supply and Demand Together at Last

Price of   Number of Widgets Number of Widgets
Widgets    People Want to Buy Sellers Want to Sell

 $1.00            100                  10

 $2.00             90                  40

 $3.00             70                  70
 $4.00             40                  140

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