2 Reading 13 Demand and Supply Analysis: Introduction INTRODUCTION In a general sense, economics is the study of production, distribution, and con- sumption and can be divided into two broad areas of study: macroeconomics and microeconomics. A positive relationship exists between price and quantity when it comes to the supply curve. This relationship between price and quantity is modeled below. An increase in demand shifts the demand curve rightward and an increase in supply shifts the supply curve rightward.

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