Suppy And Demand

Supply and Demand

Joseph Urman Jr.

DeVry Institute of Technology, Online

The interaction of these forces of supply and demand in the marketplace can be depicted by combining the demand curve and the supply curve in a single graph. Only at the point at which the two curves intersect will the price/quantity desires of the buyers balance with the price/quantity desires of the sellers. The result is an equilibrium price and quantity set by the market forces of supply and demand.

I am a huge PC game online. In my thoughts I would think that I am the demand for better and more detailed games. And the supply lets say "Blizzard" is the supply for this games. Me as the demand wants these games at a reasible price, and it is up to the suppler "blizzard" to supply these games at that price. So we can find a equilibrium in the supply and demand graph.

According to (www.wikipedia.com)(2007) The supply and demand model describes the interaction in the market for a certain good between producers and consumers, in relation to the price and sales of the good. It is the fundamental model of microeconomics, and is used to explain a variety of microeconomic scenarios, as well as as a building block for many other economic models and theories. It was originally described by Antoine Augustin Cournot, and was popularized by Alfred Marshall.

^ a b Humphrey, Thomas M. (March/April 1992). "Marshallian Cross Diagrams and Their Uses before Alfred Marshall: The Origins of Supply and Demand Geometry". Economic Review. Retrieved on 2007-02-26.

Wikipedia.com (March 2007) "Supply and Demand" Retrieved on 2007-03-10.