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?
Include an explanation of the concept of market equilibrium.