There are several possible scenarios involving changes in supply and demand that people are supposed to memorize in AS Economics. For example, when Either Demand OR Supply Move on Their Own:
- Rising Demand - Increase in Qty - Increase in Price
- Falling Demand - Decrease in Qty - Decrease in Price
While price is pretty self explanatory in every situation, I have yet to fully understand what "Quantity" represents.
What does Quantity mean in these examples?
Does it mean "Equilibrium Quantity"? If so, can somebody please explain how the "Quantity Demanded" and "Quantity Supplied" are related to each other, and how the theory behind quantity as a whole relates to/ties in with each of the examples above?