What Are Supply and Demand Curves?
Supply and demand curves are graphs used in economics and business theory to explain how optimal prices are reached and how consumers behave. These curves, and the relationship between supply and demand that is expressed within them, are often used as a justification for supporting the free market system. The curves attempt to graph the behavior that people exhibit when buying and selling a product in order to illustrate how a change in price can affect the market.
Supply and demand curves are graphs used in economics and business theory to explain how optimal prices are reached and how consumers behave. These curves, and the relationship between supply and demand that is expressed within them, are often used as a justification for supporting the free market system. The curves attempt to graph the behavior that people exhibit when buying and selling a product in order to illustrate how a change in price can affect the market. Understanding supply and demand curves involves understanding how and why the curves are drawn and what the curves represent. The supply line on the curve represents the availability of a given type of product. The demand line on the curve represents the overall number of potential buyers for the product, or the demand for the product.
