Demand, How much of a product people want to buy at different prices., Supply, How much of a product producers are willing to sell at different prices., Law of Demand, When prices go up, people usually buy less. When prices go down, people usually buy more., Law of Supply, When prices go up, producers are willing to make and sell more. When prices go down, they sell less., Equilibrium, The price where supply and demand are equal. This is the “just right” price., Surplus, When there is too much of a product because the price is too high and people do not buy it., Shortage, When there is not enough of a product because the price is too low and people want to buy more than is available.

Supply & Demand

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