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- Price
- And there, it says that my package will be delivered within 4-7 business days
- Demand
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- I wouldn't count on that
- Price
- What do you mean? It says right here 4-7 business days. What? Did they run out of people to bring me the product?
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- Supply
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- Absolutely
- Sort of. We call this aspect of supply and demand, the supply as you the consumer demand goods and services, firms supply them to make a profit. There are some aspects however that effect the relationship between demand and supply.
- Price
- S2
- S1
- Ok, but i'm confused on how this supply and demand stuff works. Can you explain?
- This is your typical supply and demand graph. One arrow to represent each concept
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- Supply
- Quantity
- This graph shows us how a change in demand affect price. As demand increases and there is no increase/decrease in supply, then price will go up as well.
- Demand 1
- Demand 2
- Quantity
- Now this graph shows us if demand increases and supply decreases, prices will be higher. This graph prefectly illustrates the economic crisis that the United States faces during the COVID-19 pandemic
- Demand 1
- Demand 2
- Quantity
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