ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Because the graphs for demand and supply curves both have price on the vertical axis and quantity on the horizontal axis, the demand curve and supply curve for a particular good or service can appear on the same graph.

Detailed explanation-2: -The horizontal axis on the supply and demand diagram represents quantity. The vertical axis represents price. The supply curve is plotted as a line with an upward slope, pointing up and to the right. If the available quantity of the good increases, the supply curve shifts right.

Detailed explanation-3: -The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity demanded on the horizontal axis.

Detailed explanation-4: -When looking at supply and demand curves, a perfectly horizontal line indicates that an item has perfect elasticity, or that its demand is immediately responsive to changes in price. When the price of a perfectly elastic good or service increases above the market price, the quantity demanded falls to zero.

Detailed explanation-5: -The supply and demand graph visually illustrates the relationship between supply and demand. The x-axis represents the quantity and the y-axis represents the price. On the supply and demand curve, quantity determines how much suppliers offer and how much consumers demand.