Supply and Demand
By: Spencer Johnson
Demand is the desire, willingness, and ability to buy a good or service
Why does demand change?
Demand changes because of change of taste, change of income, change of season, etc.
Supply is the quantities of a good or service that producers are willing to sell at all possible market prices.
Why does supply change?
Supply changes because of new technologies coming about making old processes less expensive and less popular.
The price at which the producers are willing to supply is equal to the amount consumers are willing to buy.