Supply and Demand Diagram
Graph showing supply curve (upward-sloping) and demand curve (downward-sloping) intersecting at equilibrium point.
Formula
Equilibrium: Quantity Demanded = Quantity Supplied
Real World
The used car market in 2021 illustrated supply and demand in action: semiconductor shortages cut new car supply, shifting the supply curve left and pushing used car prices to record highs.
Exam Focus
Always label both axes (Price on Y, Quantity on X), both curves, and the equilibrium point P* and Q* — unlabelled diagrams lose marks.
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