What is a supply and demand graph?

The supply and demand graph visually illustrates the relationship between supply and demand. The x-axis represents the quantity and the y-axis represents the price. On the supply and demand curve, quantity determines how much suppliers offer and how much consumers demand.

How do you analyze a supply and demand graph?

A supply and demand graph is analyzed by first establishing the supply curve and the demand curve. From there, deductions and assumptions can be made on the nature of each curve and where they intersect. In economics, supply and demand are regarded as two fundamental components of any wealth system.

What is supply and demand in economics?

supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market.