Consumer demand and Producer supply

Course learning objective #3: Explain the relationship between consumer demand and producer supply.

The law of demand states that as prices increase the quantity demanded decreases. The law of supply states that as prices increase the quantity supplied increase. Using these two laws,

• Explain how changes in prices result in a downwards sloping demand.
• Explain how changes in prices result in an upward sloping supply.
• What will happen when consumer demand equals producer supply?

*Make certain that you include in your explanation the concept of market equilibrium.

Your explanations should take a few paragraphs to fully develop. Please submit here via a Microsoft Word document.