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Introduction to Microeconomics - Supply and Demand

Geoff Riley

3rd September 2026

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Supply and demand form the foundation of any market economy, dictating exactly how prices are determined for goods and services.

Supply represents the total quantity of a product that producers are willing to offer at a specific price point.Conversely, demand signifies the willingness of consumers to purchase that particular product. In a competitive market, these two underlying forces constantly interact to reach an equilibrium where the quantity supplied perfectly equals the quantity demanded. When demand outstrips supply, prices naturally rise, whereas an excess supply forces prices downwards to stimulate sales and restore balance across the wider economic landscape seamlessly.

Introduction to Microeconomics - Supply and Demand
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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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