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Define the law of supply and the law of demand. Discuss how market supply differs from...

Define the law of supply and the law of demand. Discuss how market supply differs from the individual supply, and explain the difference between individual demand and market demand.

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Answer #1

Law of supply in simple meaning says that in ceteris paribus price and quantity supplied are directly related which means if price increases then supply will also increase and vice versa

It is represented on supply curve

Law of demand says that in cetris paribus price and quantity demanded are inversely related which means if price increases then quantity demanded will decrease and vice versa

It is represented on the demand curve by upward sloping curve

Individual supply talks at the the individual producer at each price and market supply is the combination or the addition of all the individuals supply which is for all the producers in any Industry

Individual demand is a demand generated by the single consumer at a given price but market demand is a combination of all the individual demand in a particular market

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