Supply and Demand 英文版

Supply and Demand

What is supply? Supply is an amount of something available for use. The demand is the ability and desire to purchase goods and services. The law of supply is a fundamental principle of economic theory which states that, all else equal, an increase in quantity supplied. The law of demand is inverse relationship between price and quantity of demand. For example: the supply and demand for AIHS chocolate by selling price.

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From the table, we can find the equilibrium price when price is between 5 and 6, and the supply quantity and demand quantity are same that is about 20. In the table, we can get the demand curve is go down sharply when price go up. To the contrary, the supply curve is rise slowly when price go up.

A publicity campaign saying that AIHS chocolate increases the risk of having cavities, demand is reduces by 21.

From the table, we find the equilibrium price is between 4 and 5. The supply quantity is inverse proportion with demand supply quantity.

A new study proves that the publicity campaign was a lie, AIHS chocolate is actually good for your health. The table bellows describes the new demand.

The table is different with before table. The new table’s equilibrium price is between 10 and 11. In the table, the demand quantity is going down when the price rise. The supply quantity is going up when price going up. The supply quantity is direct ratio with price, but the demand quantity is inverse ratio with price.