Supply and Demand Review Worksheet Things to Remember Supply and Demand are opposites As prices change they react opposite to each other . As demand changes, surpluses or shortages may be created. A surplus or shortage may force suppliers to make changes in consumer prices The Law of Supply: As price increases the producer has an incentive to or supply If price decreases, the producer has an incentive to or supply The Law of Demand: As the price more people will be unwilling or to purchase the product. As the price more people will be and able to purchase the product. Draw and Label the supply and demand curves for the supply and demand schedules below Be sure to label ALL of the following items in the chart: The X and Y axis (price & quantity) . Price in Dollars / Quantity in Millions The Supply Curve The Demand Curve The Equilibrium Point Highlight and label the areas where Surpluses and Shortages occur. Price Quantity In Dollars Supplied $50 250 mil. $40 210 mil. $30 180 mil. $20 100 mil. $10 50 mil. Price Quantity In Dollars Demanded $50 100 mil. $40 130 mil. $30 160 mil. $20 210 mil. $10 300 mil. Examine the graphs below. Label each one as either a supply or demand curve. Highlight the curves