Basic Supply and Demand

demand intercept

8

demand slope

-1

supply intercept

2

supply slope

1

Q

e

quantity

P

e

price

supply and demand

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.

P

e

and

Q

e

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