Info

The demand tells us that if the price is higher than a then the buyers will not buy; thus, for a transaction to occur the price must be lower. The demand also tells us that at a price lower than a the quantity demanded by the buyers increases. Buyers' behaviour, as described by the demand equation, is that at lower prices buyers buy more quantity.

The equation describing the upward sloping market supply function, in which QS represents the quantity supplied by sellers and P the price is

Was this article helpful?

0 0

Post a comment