1. MICROECONOMICS
DEMAND AND SUPPLY

2. DEFINE DEMAND AND SUPPLY
• DEMAND: The amount of a particular economic good or service that a consumer or group of consumers will
want to purchase at a given price.
SLOPE OF DEMAND: The demand curve is usually downward sloping, since consumers will want to buy more
as price decreases.
• SUPPLY: The total amount of a good or service available for purchase; along with demand, one of the two
key determinants of price.
SLOPE OF SUPPLY:The supply curve usually slopes upward, since higher prices give producers an incentive
to supply more in the hope of making greater revenue.

3. DEMAND AND SUPPLY GRAPHS
• DEMAND
• SUPPLY

4. MARKET EQUILIBRIUM POINT
DEFINITION
• A state of equality between the
level of available supply of a
product or service, and the amount
of demand for that product or
service.
GRAPH

5. SURPLUS VS SHORTAGE
• SHORTAGE: shortage is just the opposite where demand is high
and supply is low.
• SURPLUS: economic surplus means that there is more of the
product freely available than the demand for the product asks for.

6. SHORTAGE VS SURPLUS

7. MACROECONOMICS
CONTINUES