Supply

This week in Economics we learned about supply. Supply is the ability and the desire of the producer to sell a product. The law of supply says that when prices go down, quantity supplied goes down and when prices go up, quantity supplied goes up. Producers are motivated to increase supply by profit. They want to make more profit and so will supply more at a higher price. The supply curve is constantly sloping upwards unlike the demand curve. This is because producers want higher prices but consumers want lower prices. I think supply and demand are the main things that drive the economy. Consumers will demand more products at lower prices and producers will supply more products at higher prices. This relates to everyday life. Supply and demand constantly affect prices. Prices are either lowered or raised by the demand of consumers and the supply of producers.