Quick questions on Markets, demand and supply - TCE Economics (Tasmania)

Demand is the quantity of a good buyers are willing and able to purchase at each price over a period. The law of demand says that, all else equal, as price falls quantity demanded rises, so the demand curve slopes downward from top-left to bottom-right. This happens because of the income effect (a lower price leaves buyers with more real purchasing power) and the substitution effect (the good becomes cheaper relative to alternatives).

Supply is the quantity sellers are willing and able to produce at each price. The law of supply says that, all else equal, a higher price encourages more production, so the supply curve slopes upward. The main non-price supply shifters are input or resource costs, technology, the number of producers, government taxes and subsidies, and producer expectations. Lower input costs or new technology shift supply right (more is supplied at every price).

Equilibrium is where the demand and supply curves intersect. At the equilibrium price the quantity demanded equals the quantity supplied, so there is no pressure for price to change.