Question

Create a supply and demand graph in Excel that demonstrates the relationship between the amount buyers are willing to purchase and the quantity available. You may select your own data points, but you must discuss the relationship between supply and demand within the economy, as well as discuss the concept of market equilibrium. Please attach your graphs along with your discussion in your response. Provide an explanation for the value graphing supply and demand and analyzing the data can have on decision-making in a business and the economy.

Answer 1

The above table shows that at price of $ 10, consumers are willing to buy 30 units while sellers are willing to sell only 10 units because of lower price. As price increases from 10 to 20 and so on, consumers are willing to buy less goods because their purchasing power falls while sellers are willing to sell more goods as their profit increases.

At price of $ 20, there is market equilibrium which means quantity that consumers are willing to buy is equal to the quantity that sellers are willing to sell.