Graphical Representation of Supply and Demand
Although it is normal to regard the quantity demanded and the quantity supplied as functions of the price of the good, the standard graphical representation, usually attributed to Alfred Marshall, has price on the vertical axis and quantity on the horizontal axis, the opposite of the standard convention for the representation of a mathematical function.
Since determinants of supply and demand other than the price of the good in question are not explicitly represented in the supply-demand diagram, changes in the values of these variables are represented by moving the supply and demand curves (often described as "shifts" in the curves). By contrast, responses to changes in the price of the good are represented as movements along unchanged supply and demand curves.
Read more about this topic: Supply And Demand
Famous quotes containing the words supply and demand, supply and/or demand:
“Artistic inspiration ignores the law of supply and demand.”
—Mason Cooley (b. 1927)
“I think it’s a question which particularly arises over women writers: whether it’s better to have a happy life or a good supply of tragic plots.”
—Wendy Cope (b. 1945)
“... the self respect of individuals ought to make them demand of their leaders conformity with an agreed-upon code of ethics and moral conduct.”
—Mary Barnett Gilson (1877–?)