Supply and Demand
People draw supply and demand graphs so that they can easily see the relationship between the supply - how much is available of a good or service at different prices - and the demand, which is the desire to own something and the ability to pay for it.

This online animation shows you how to draw a graph of the supply and a graph of the demand for a product. Imagine that the product is any good or service that might cost between $1 and $10. Follow the directions to learn how to draw a demand graph and a supply graph using the data given. Pay attention to the language used to describe the parts of the graph. Note how the supply graph and the demand graph differ in the way they slope.

After both graphs are drawn, answer the questions to determine the market price and the quantity bought and sold in the market.