ECONOMIC SUPPLY & DEMAND

10 D-4388Demand and Supply SchedulesPrice Quantity QuantityDemandedSupplied(per week)(per week)---------------------------------------------------------------$50 10 100$45 14 97$40 18 94$35 22 89$30 28 84$25 35 77$20 45 68$15 57 57$10 73 40$5 100 0Table 1: Demand and Supply SchedulesFor each price, the schedule above indicates the quantity (in articles per week) of clothingdemanded and supplied.The market will reach equilibrium when the quantity demanded and the quantitysupplied are equal. At $15, supply and demand are equal at 57 articles of clothing perweek. To better understand the dynamics involved, suppose that one article of clothingwas selling for $30. Producers would be willing to supply 84 articles of clothing perweek, but consumers would only be buying 28 articles per week. As a result, theproducers would have excess inventory piling up very quickly. In order to get theirinventory back to the desired level, the suppliers would have to decrease production andreduce the price. Eventually, the quantity demanded and quantity supplied meet at 57articles per week at a price of $15.