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Economics9 min read

Supply and Demand: The Core of Economics

How prices emerge from the interaction between buyers and sellers.

Last updated July 12, 2026

In this guide

  1. 1. The demand curve
  2. 2. The supply curve
  3. 3. Equilibrium

1.The demand curve

All else equal, as price falls, quantity demanded rises. This produces a downward-sloping demand curve.

2.The supply curve

All else equal, as price rises, quantity supplied rises. This produces an upward-sloping supply curve.

3.Equilibrium

The market price settles where supply meets demand. Shifts in either curve move the equilibrium.