Law Of Supply: The Law of Supply states that, all else equal, an increase in price results in an increase in quantity supplied
In Other Words: There is a direct relationship between price and quantity
Law of Demand: The Law Of Demand states all other factors being equal, s the price of a good or service increases, consumer demand for the good or service will decrease
In Other Words: The higher the price, the lower the quantity demanded
How They Are Related: They are related because demand shows how much of a product is desired by consumers while supply shows how much the market is able to offer. They both underlie the forces behind the allocation of the resources.
Pricing: The supply and demand model states that the price of a good will be the level where the quantity demanded equals the quantity supplied.
In Other Words: There is a direct relationship between price and quantity
Law of Demand: The Law Of Demand states all other factors being equal, s the price of a good or service increases, consumer demand for the good or service will decrease
In Other Words: The higher the price, the lower the quantity demanded
How They Are Related: They are related because demand shows how much of a product is desired by consumers while supply shows how much the market is able to offer. They both underlie the forces behind the allocation of the resources.
Pricing: The supply and demand model states that the price of a good will be the level where the quantity demanded equals the quantity supplied.