Supply
Supply is concerned with the behaviour of firms (producers) and refers to the quantities of a good or service that producers are willing and able to supply at different prices in a given time period.
The three definitions below are the building blocks of market analysis. Press Click here to open the interactive page, or Watch on Bilibili for the video walkthrough.
Supply is concerned with the behaviour of firms (producers) and refers to the quantities of a good or service that producers are willing and able to supply at different prices in a given time period.
Demand is concerned with the behaviour of consumers and refers to the quantities of a product that consumers are willing and able to buy at various prices, over a period of time, ceteris paribus.
Market equilibrium occurs at the price where quantity demanded equals quantity supplied. At this point, the market is cleared of any shortage or surplus.