GSU Economics · Pattern D · Animated Scene

Supply & Demand in Motion

Drag the price line up and down. Watch surplus and shortage appear and disappear. Shift the supply or demand curve and see the equilibrium move. This is the whole engine of a market economy — visible, touchable, real.

The two laws every economic decision rests on

Law of Demand: As price rises, quantity demanded falls. As price falls, quantity demanded rises. Consumers respond to cost. The demand curve slopes down — always.

Law of Supply: As price rises, producers supply more. As price falls, they supply less. Profit drives production. The supply curve slopes up — always. Where the two curves cross is the market equilibrium — the price where quantity supplied exactly equals quantity demanded. Move either curve and the equilibrium moves with it.

Shift:

$—

Current Price

$—

Equilibrium Price

—

Qty Demanded

—

Qty Supplied

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Market State

Market at equilibrium

At equilibrium, every seller finds a buyer and every buyer finds a seller. The market clears. Drag the price line to see what happens when price is set above or below equilibrium.

🥉 Bronze — Price dragged

🥈 Silver — Surplus & shortage seen

🥇 Gold — Curve shifted

✦ Platinum — New equilibrium found

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