More than you ever wanted to know about the Laws of Demand and Supply

As we discussed, the world of Macroeconomics, like the worlds of Physics and Chemistry, has laws that govern how things will happen.

The three that you need to know for our course, for your economics courses and future enjoyment are:

1. The Law of Demand: There is an Inverse Relationship between a Product's Price and the Quantity of that product that will be Demanded. Generally, more quantity will be demanded when prices are lower.
2. The Law of Supply: There is a Direct Relationship between a Product's Price and the Quantity of that product that will be Supplied. Generally, producers will supply greater quantities as prices increase.
3. The Law of Equilibrium Price: For all markets, there is an Equilibrium Price where the market Clears. Generally, a market's Equilibrium Price balances the quantity of a product supplied with the quantity demanded and there is no unsatisfied demand or no surplus or inadequate production.

Download this discussion of how markets operate in the world of Macroeconomics. It discusses - complete with graphs - how all this works. These are essential concepts that will need to be mastered as part of your business education. Download Macroeconomics' Laws of Demand and Supply