The Importance of Supply and Demand

By: Yesenia Escareno

- “price at which supply equals demand for a people were working from home which led its supply and
Introduction
Equilibrium

Supply and demand are one of the most basic

product , in other words where the hypothetical supply demand to be low .(
Harapko ). There were many industries

concepts of economics , but it is one of the most

and demand curves intersect ”(Staff ) that were doing very well at the start of the pandemic such

crucial and important concepts . Demand is defined as Factors Affecting Supply as grocery stores and PPE companies . These companies

“the amount of some good or service consumers are decrease in costs of production (" Factors Affecting had a huge supply and demand boom . With the businesses

willing and able to purchase at each price ” (“

Demand Supply ") weather who benefited profitably from the pandemic , 11% reported

and Supply ” 47). Supply is defined as “the amount of more firms productivity positive effects . These same companies reported an

some good or service a producer is willing to supply at related supply technological improvements increase in customer demand by 71%.
each price ” (48) . Both of these concepts balance on
Factors Affecting Demand
Conclusion
one another in order to make up the market and keep
income (" Factors Affecting Demand ") Supply and demand are such necessary concepts to

the economy flowing . credit facilities weather

understand how the economy runs and works . The pandemic

allowed for many people to understand in a deeper analysis

Law of Supply - when quality substitutes

advertising complements
how quick the economy can change . These two will always be
there is a decrease in

one of the most fundamental concepts in economics .

price the outcome is
How Covid-19 Affected
a decrease in the
Works cited
quantity supplied , and
supply and demand
“ Demand and Supply .” 2 ,
Principles of Economics e . by Steven A .,Greenlaw et al

vice versa
One of the major ways the economy was affected was OpenStax College , , 2018, . 47–48.
Rice University pp

, .“ -19 .” ,
with supply and demand . There was a huge supply and
Harapko

EY Feb
Sean

, 18 . 2021,
How COVID

. . / _ /
www ey com en
Impacted Supply Chains and What Comes Next

-
us supply / - -19-
chain how covid - -
impacted
EY

supply

Law of Demand - demand shock (

Maiello ). Many people were furloughed - -
chains and- what - .
comes next

, .“ -19 .”
as the price of a
from their jobs , so these people had no spending power in
Maiello

Review
Michael

,May
How COVID

2020, .
Shocked Both Supply and Demand

. /
review chicagobooth edu economics /2020/ / - -
Chicago Booth

article how covid

the economy . This resulted in demand dropping all across 19- -

shocked -both - - supply .
and demand

good or service
, .“ .” , 24 2020,
. Pettinger Tejvan Factors Affecting Demand Economics Help July

, . . / / / /.
the board Those industries that had to be shut down back
www economicshelp org microessays equilibrium demand
increases

in March 2020, ad a decrease in their demand , but it also Pettinger ,Tejvan .“ Factors Affecting Supply.” , 24
Economics Help 2020, July

. . / / / /.
.
consumers will www economicshelp org microessays equilibrium supply

, .“ .” , ,1
affected the complementary goods and services
Staff Investopedia Economic Equilibrium Definition Investopedia Investopedia
purchase less of it
Automotive services and stores were at a low since a lot Jan . 2021, . . / / /
www investopedia com terms e economic - . .
equilibrium asp