Demand, Supply, and Price Demand, Supply, and Price No. You can press the Mark it button at the bottom of the page to have the quiz marked .
Prices provide incentives to help the economy use resources efficiently.
As the price falls, the quantity demanded decreases. The market demand curve is the sum of the quantities and prices of each individual demand. The individual demand curve is an example of an equilibrium relationship. One reason why the supply curve slopes upward is that at higher prices, more producers enter the market. In equilibrium, there is neither excess demand nor excess supply.