Understanding the Law of Supply and Demand

📈The law of supply states that as the price of a product increases, the quantity supplied also increases, and vice versa.

📉The law of demand states that as the price of a product increases, the quantity demanded decreases, and vice versa.

💰Changes in income can affect demand, with higher income leading to increased demand for certain goods.

🔁The availability and prices of complementary goods can influence the demand for a product.

👥The number of consumers also affects the demand for goods and services, with more buyers leading to higher demand.

What is the law of supply?

—The law of supply states that as the price of a product increases, the quantity supplied also increases, and vice versa.

What is the law of demand?

—The law of demand states that as the price of a product increases, the quantity demanded decreases, and vice versa.

How does income affect demand?

—Changes in income can affect demand, with higher income leading to increased demand for certain goods.

What are complementary goods?

—Complementary goods are products that are often sold and used together. The availability and prices of complementary goods can influence the demand for a product.

How does the number of consumers affect demand?

—The number of consumers also affects the demand for goods and services, with more buyers leading to higher demand.

00:27Introduction to the law of supply and demand.

02:48Explanation of the law of supply and how it affects prices and quantity.

04:09Introduction to the law of demand and its impact on prices and quantity.

07:57Factors that affect supply, including income and prices of complementary goods.

17:34Factors that affect demand, including changes in income, availability and prices of complementary goods, number of consumers, and changes in taste.