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In: Economics

How are the demand and supply curves similar to one​ another? How are the demand and...

How are the demand and supply curves similar to one​ another? How are the demand and supply curves​ different?

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Expert Solution

Ans-1 there are some properties of both demand and supply. Some features are different and some features are similar.

Properties of demand curve :- 1.Demand curve shows the relationship between quantity demanded and the price it means that what is the consumer's willingness to pay for a particular quantiy. P = a - bQ. 2.Demand curve tells us the relationship between the price and quantiy. 3. Law of demand states that there is negative relation between quantity demanded and price. As price increases quantiy demanded decreases. Due to this slope of the demand curve is negative. 4. There are shifts in the demand curve due to the others factors such as festivals, change in tastes and preferences etc.if demand curve shifts to the right it means quantiy demanded increases keeping price constant. And if it shifts left it means quantiy demanded decreases keeping price constant.

Properties of supply curve:- 1. Supply curve shows the relationship between price and quantity supplied by the producers. What is producer's willingness to accept a price for a particular quantiy supplied. P = a + bQ 2. Supply curve tells us the relationship between quantity and price. 3. There is a position relation between Quantity supplied and price.as price increases quantiy supplied increases. So slope of the supply curve is positive. 4. There are also shifts in the supply curve not due to price but due to external factors such as change in technology, change in production cost etc. If it shifts right it means quantiy supplied increases keeping price constant and if it shifts left it means Quantity supplied decrease keeping price constant.

Similarity between demand curve and supply curve.

1. Both explains relationship between price and quantiy.

2. Both shifts according to market conditions. And both works to get a equilibrium price and equilibrium quantity.

Difference between demand and supply curve.

1. Demand represents consumer side and supply represent producer side.

2. Demand is negatively sloped and supply is positively sloped.

3. Demand shows willingness to pay and supply curve shows willingness to accept for a particular quantiy.

Rahul Sunny answered 2 years ago
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