Understanding Supply and Demand

The law of supply states that as the price of a good increases, the quantity supplied of that good also increases, ceteris paribus (all other things being equal).
The supply curve slopes upwards, meaning that as the price increases, the quantity supplied increases.

The law of demand states that as the price of a good decreases, the quantity demanded of that good increases, ceteris paribus.
The demand curve slopes downwards, meaning that as the price decreases, the quantity demanded increases.

Price of the good: An increase in the price of the good increases the quantity supplied.
Production costs: A decrease in production costs increases the quantity supplied.
Technology: An improvement in technology increases the quantity supplied.
Expectations: If producers expect the price of the good to increase in the future, they may increase the quantity supplied today.
Number of suppliers: An increase in the number of suppliers increases the quantity supplied.

Price of the good: A decrease in the price of the good increases the quantity demanded.
Income: An increase in income increases the quantity demanded.
Price of related goods: A decrease in the price of a substitute good increases the quantity demanded, while an increase in the price of a complementary good decreases the quantity demanded.
Taste and preference: A change in consumer taste or preference increases or decreases the quantity demanded.
Population: An increase in population increases the quantity demanded.

Equilibrium price: The price at which the quantity supplied equals the quantity demanded.
Equilibrium quantity: The quantity at which the quantity supplied equals the quantity demanded.
Market equilibrium: The state in which the supply and demand curves intersect, resulting in no excess supply or demand.

Increase in supply: A shift to the right of the supply curve, resulting in a decrease in price and an increase in quantity.
Decrease in supply: A shift to the left of the supply curve, resulting in an increase in price and a decrease in quantity.
Increase in demand: A shift to the right of the demand curve, resulting in an increase in price and an increase in quantity.
Decrease in demand: A shift to the left of the demand curve, resulting in a decrease in price and a decrease in quantity.

As the price of a good increases, the quantity supplied also increases, ceteris paribus, resulting in an upward-sloping supply curve.
This means that as the price rises, producers are incentivized to supply more of the good.

As the price of a good decreases, the quantity demanded of that good increases, ceteris paribus, resulting in a downward-sloping demand curve.
This means that as the price falls, consumers are incentivized to buy more of the good.

An increase in the price of a good increases the quantity supplied, as higher prices make it more profitable for producers.
A decrease in production costs increases the quantity supplied, as lower costs make it cheaper to produce.
An improvement in technology increases the quantity supplied, as it allows for more efficient production.
If producers expect the price of the good to increase in the future, they may increase the quantity supplied today to take advantage of the higher price.
An increase in the number of suppliers increases the quantity supplied, as more producers enter the market.

A decrease in the price of a good increases the quantity demanded, as lower prices make the good more attractive to consumers.
An increase in income increases the quantity demanded, as consumers have more money to spend.
A decrease in the price of a substitute good increases the quantity demanded, as consumers switch to the cheaper alternative.
An increase in the price of a complementary good decreases the quantity demanded, as the higher price makes the good less attractive.
A change in consumer taste or preference increases or decreases the quantity demanded, depending on the direction of the change.
An increase in population increases the quantity demanded, as more people enter the market.

The equilibrium price is the price at which the quantity supplied equals the quantity demanded.
The equilibrium quantity is the quantity at which the quantity supplied equals the quantity demanded.
Market equilibrium occurs when the supply and demand curves intersect, resulting in no excess supply or demand.

An increase in supply shifts the supply curve to the right, resulting in a decrease in price and an increase in quantity.
A decrease in supply shifts the supply curve to the left, resulting in an increase in price and a decrease in quantity.
An increase in demand shifts the demand curve to the right, resulting in an increase in price and an increase in quantity.
A decrease in demand shifts the demand curve to the left, resulting in a decrease in price and a decrease in quantity.