Economics:Supply and demand

The 4 Laws of supply and demand

• When the supply goes up, the price goes down 
• When supply goes down, the price goes up
• If demand is the same, and supply increases, you have a surplus
• If demand is the same, and supply goes down, you have a scarcity

The law of demand

• The more money a good is, the less people are going to buy it
• Ex: If one pancake is $1.50, and another is $3.50, people will probably buy

The Law of Supply

• The more money a good is, the more people will buy it
• Ex: If 50 pancakes are 10.25, people will probably buy it

Equilibrium and disequilibrium

•  Equilibrium is when the supply and demand are equal with eachother
• Disequilibrium is when the price and quantity are not equal
• Excess supply is when the price is to high
• Excess demand is when the demand is to high

Time and Supply

• Suppliers must act quickly to change in

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