Demand and Supply

Syllabus tag: KCSE | Business Studies | Form 3 | Topic 15 Demand and Supply

Lesson objectives

By the end of this topic, you should be able to:

• Define demand and supply and state their determinants.
• Draw and interpret demand and supply schedules and curves.
• Distinguish a movement along a curve from a shift of the curve.
• Explain how equilibrium price and quantity are determined.

Summary

Demand is the quantity buyers are willing and able to buy at a given price; supply is the quantity sellers are willing and able to offer. A change in the price of the good itself causes movement ALONG the curve; a change in anything else shifts the whole curve. Where the two curves cross lies the equilibrium price and quantity.