Supply and demand/Tutorials
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(Introduction to be added)
Graphical representations of supply and demand
The shape of the demand curve
The converse of the premise stated in the article is that the less of a thing that a person possesses, the more he is prepared to pay to acquire a little more of it. That means that, as price is increased, a progressively larger increase is needed to produce a given reduction in demand. Thus the slope of the price/demand curve increases as price is increased and falls as price is reduced - leading to a curve that is concave when viewed from above.
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The basic diagram
This is the stylised representation of the law of
supply and demand that is often used for teaching
purposes (with the labels reversed, unfortunately)
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Consumers surplus and the effect of tax
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