Price
Quantity
Demand
Supply
Supply and demand curves in a market
Assumes perfect competition with many buyers and sellers
P0 Q0
Supply: how much will be made at a given price
As supply increases, price increases and quantity decreases
P1 Q1
Demand: how much will be bought at a given price
As demand increases, prices and supply increase
P2 Q2
P0
P2
P1
Q0
Q2
Q1
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