Supply and Demand Curve Analysis Essay

Supply and Demand Curve
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Supply and Demand Curve
The demand and supply are vital economic variables that seek to achieve equilibrium for goods and services consumed and produced by customers and producers. Frequently, their graphical presentation comes in handy in the understanding of various market dynamics. Overall, these two parameter curves are impacted by multiple variables. For instance, consumers' income and the cost of production of services and goods significantly affect demand and supply curves, respectively.
Consumers' income affects the demand and supply curves. According to Mankiw (2020), a customer's purchasing power directly depends on their disposable income. When disposable income increases, consumers will afford more commodity units; hence, they will purchase more products. Sometimes this explanation is depicted by a shift of the demand curve to the right. On the other hand, goods and services' production cos...