AI Study Pack
supply and demand curves
EconomicsCOLLEGECOLLEGE
AI-generated cheatsheet with key concepts, formulas, and common mistakes — plus audio, MCQs, mind maps & more.
AI-generated
Supply and Demand Curves Cheat Sheet
Key Definitions
- Supply Curve: A graph showing the relationship between the price of a good and the quantity supplied. ✅
- Demand Curve: A graph showing the relationship between the price of a good and the quantity demanded. ✅
- Equilibrium Price: The price at which quantity supplied equals quantity demanded. ✅
- Shifts: Changes in supply or demand due to factors other than price. ⚠️
Important Concepts
Law of Demand
- As price decreases, quantity demanded increases. ✅
- Inversely related: Price ↔ Demand
Law of Supply
- As price increases, quantity supplied increases. ✅
- Directly related: Price ↔ Supply
Market Equilibrium
- Occurs where the supply and demand curves intersect. ✅
- Surplus occurs when supply > demand; shortage when demand > supply. ✅
Key Formulas
Qd = a - bP (Demand)- Qd: Quantity demanded
- a: Intercept (max demand)
- b: Slope (change in demand per price unit)
- P: Price
Qs = c + dP (Supply)
- Qs: Quantity supplied
- c: Intercept (min supply)
- d: Slope (change in supply per price unit)
Common Mistakes to Avoid
Common Mistake: Confusing shifts in the curve (due to external factors) with movements along the curve (due to price changes).
Memory Tricks
Tip: "DIPS" — Demand Increases, Price Stays (shift right) & Supply Increases, Price Stays (shift right).
Key Diagrams
Price
|
| S
| /
| /
| /
| /
| /
| /
| /
|/______________
| D
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|________________ Quantity
This pack also includes
Audio Podcast
5-min summary
10 MCQs
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Mind Map
Visual connections
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