How does the demand and supply diagram form?

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The demand and supply diagram is based on two viewpoints. The demand line is based on the point of view of the consumer, the higher the price of an item, the less they will want to pay, hence the downward sloping curve. The supply line is based on the point of view of the supplier, therefore the higher the price of an item, the more they will want to get in the market and sell, hence the upward sloping curve. Where the two lines cross on the same diagram is the price of the amount and the quantity that is supplied / demanded.

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