SUPPLY AND DEMAND

DEMAND
When speaking of demand refers one to the amount of goods or services sought or desired in a
particular market economy at a specific price.
The demand that a person, a family, a business or a consumer generally has a particular product or
service may be influenced by many factors that determine the amount of product requested or
demanded, or even if it is in demand or do not.
Some of these factors are consumer preferences, habits, the information it has about the product or
service for which it is interested, the type of property under consideration (see | Real ) and
purchasing power; ie, the economic capacity of the consumer to pay for the product or service,
utility or welfare that good or service produced him, the price, the existence of a complementary
good surrogate (see | Real ), among others. It is important to note that these factors are not static,
they may change over time or at a particular time.
In economic analysis tends to simplify this panorama maintaining constant levels of all factors other
than price; thus, a relationship between price and quantity demanded of a product or service is
established. This relationship is known as the | demand curve . The typical shape of this curve is
presented below.

The slope of the curve is an important point to be analyzed. This slope determines how increases or
decreases in demand to a decrease or an increase in price. This concept is called the "elasticity" of
the demand curve.
In general, the law of demand indicates that there is an inverse relationship between price and
quantity demanded of a good for a certain period; ie if the price of a good rises, the demand for it

decreases; conversely, if the price of the good falls, demand will tend to rise (there are exceptions to
this law, depending on the well-being of speaking).

OFFER
When speaking of supply refers to the quantity of goods, products or services offered in a market
under certain conditions becomes. The price is one of the fundamental conditions that determines
the level of supply of particular goods in a market.
The relationship between the price of a good and the quantity of it can be seen graphically through
c | . urva offertypical shape of this curve is presented below.

The slope of the supply curve, as in the demand curve is an important point to discuss. This slope
determines how increases or decreases the supply to a decrease or an increase in the price of
good.This is the "elasticity" of the supply curve.
The law of supply states that, with an increase in the price of goods, the supply of that good there
will be greater; ie producers of goods and services have a greater incentive to offer their products
on the market for a period, since doing so will gain higher profits.
In markets, buyers reflect their wishes in demand and sellers seek to profit by offering products that
consumers or buyers are looking for; that is, they are demanding. This demand and supply of goods
act as forces for determining the price at which goods are exchanged.
If we assume that the two graphs above correspond to the demand curve and the supply curve of
the same good, we could superimpose the two curves in a single graph and find that they intersect
at a point. This point is known as the equilibrium of the market for well under study. At this point,
both buyers and sellers agree on the quantity bought or sold, and in the price.