Supply & Demand

Move the market price and see how quantity demanded and supplied respond, and where the market finds its equilibrium.

Explore the model

Supply & Demand

Origin

Supply and demand is a fundamental economic model used to understand how prices and quantities are determined in a market. It describes the relationship between what consumers are willing to buy and what producers are willing to sell.

How it works

As price increases, quantity demanded generally decreases while quantity supplied increases. The point where the two curves meet is the market equilibrium.

Explore

Start the model and change the market price. Observe how quantity demanded and quantity supplied respond, and use the difference between them to identify a surplus or shortage.