Supply and Demand
Definition
Supply and demand is an economic model that explains how prices are determined in a market. It analyzes the relationship between the quantity supplied by producers and the quantity demanded by consumers at various price levels.
Related terms
Equilibrium Price: The equilibrium price is the market price at which quantity supplied equals quantity demanded, resulting in no shortage or surplus.
Elasticity: Elasticity measures how responsive quantity demanded or supplied is to changes in price, income, or other factors.
Market Forces: Market forces refer to factors such as supply, demand, competition, and government policies that influence prices and quantities in a market economy.
"Supply and Demand" appears in:
Subjects (5)
AP European History
AP Human Geography
AP Macroeconomics
AP US History
Intro to Political Science
Study guides (2)
AP Microeconomics - 3.7 Perfect Competition
AP Microeconomics - 6.5 Inequality
Additional resources (1)
AP Microeconomics - Unit 2 Overview: Supply and Demand
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About Us
About Fiveable
Blog
Careers
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Cram Events
Merch Shop
Crisis Text Line
Help Center
© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.