Concept
Version 9
Created by Boundless
Impacts of Supply and Demand on Pricing
![Price affected by supply and demand](../../../../../../../../../figures.boundless-cdn.com/2111/full/7a-19ba-45ba-a629-afb46469406e.jpg)
Price affected by supply and demand
The price P of a product is determined by a balance between production at each price (supply S) and the desires of those with purchasing power at each price (demand D). The diagram shows a positive shift in demand from D1 to D2, resulting in an increase in price (P) and quantity sold (Q) of the product.
Source
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