Supply_and_Demand

Many things in this world seem to go hand and hand with one another, there’s salt and pepper, peanut butter and jelly, gin and tonic, and even some people go together like Batman and Robin or Sonny and Cher. Something else that comes to mind is supply and demand that are depended upon one another. There are other things that influence both supply and demand that can change them just like adding slices of banana to a peanut butter and jelly sandwich can change how it taste. When it comes to supply and demand there are two major factors that come into play that can cause a shift in supply curve and the demand curve, price and quantity. Price and quantity are the two leading factor in supply and demand. When the price goes up supply demanded goes down and when the price goes down the supply demanded goes up. Buyers for the most part only worry about on thing and that is price and who many things can I buy at that price. While seller are also worried about what is cheapest price I can sell at and with the fewest supplies. It is only when the supply and the demand balance one another out that there is then equilibrium where supply and demand meet. The equilibrium plays an important role in the supply and demand game. The equilibrium fluctuates depending on price and quantity. Changes in equilibrium prices and quantities do not always happen right away. There are shifts in supply and demand curve are reflective of changes in conditions of that certain market. An outward shift of demand will lead to a short period rise in price of goods while there will be a fall in the actual goods being produced. While a higher price will act as a motivator for suppliers to produce more goods which will cause a movement up the short period of time in the supply curve which will create a brand new equilibrium point. There are also many others outside contributing factors that can cause a shift in the equilibrium.