Basic Supply and Demand

demand intercept

8

demand slope

-1

supply intercept

2

supply slope

1

This is a basic supply and demand diagram for the purpose of teaching an introductory microeconomics class. The upward-sloping line is the supply curve, while the downward-sloping line is the demand curve.

e

P

and

e

Q

represent the equilibrium price and quantity. Inverse functions were used in building this model.