Supply and demand are among the most fundamental concepts in economics. An understanding of these topics helps explain the economic world in which we live. This series of short modules uses a fictitious chocolate market to help explain the essential concepts: demand, supply, and market equilibrium.
The law of demand describes the behavior of buyers. In general, people buy more of a good when its price is low than when its price is high. This short module uses a fictitious chocolate market to help you better understand the demand side of markets.
Prices for most goods and services are determined in markets by what economists call supply and demand. Both sides – demand and supply – are needed to determine prices. This short module uses a fictitious chocolate market to help students better understand the supply side of markets.
So, is it supply or demand that determines the market price of a chocolate bar, or any other good or service, for that matter? The answer is "both." This module uses a fictitious chocolate market to help students better understand how supply and demand work together to determine prices.
Also view our online module Supply and Demand. This one complete online module encompasses all of the Supply and Demand Short Modules (Supply, Demand, and Market Equilibrium).