Supply & demand
Buyers want more at low prices. Sellers want to sell more at high prices. Price settles where those two willingnesses meet.
- Demand
- Supply
Clears at £6.00, 8 units.
Toy numbers, not a real market.
Takeaway
- Demand slopes down; supply slopes up.
- Shifts move the intersection, changing price and quantity.
- A price stuck away from the intersection creates shortage or surplus.