Supply & Demand
Supply & Demand chart
the desire of purchasers for a particular commodity, service, or other item.
Why does demand change?
Demand changes because of things like price fluctuation, and people loosing their jobs. If the price is high people will buy none, or less. When consumer looses their source of income they will not be able to buy a product, lowering demand.
the amount of a good or service offered for sale at any available price.
Why does supply change?
When the price is high, producers will produce more product than they will at a lower price.
The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded in a market.