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Correct. Price is the independent variable, demand and supply are both dependent on price. But for some reason economists decided to put price on the Y axis. Co
by the_pwner224 5y ago
Correct. Price is the independent variable, demand and supply are both dependent on price. But for some reason economists decided to put price on the Y axis. Confusing.
However. The demand and supply curves (lines) are dependent on price. But the intersection of those lines determines the optimal price. In that sense, price is dependent on supply and demand.
So 'price' the variable should be on the X axis since it's the independent variable which controls supply & demand. But 'the optimal price' is the dependent variable controlled by supply & demand, and so that should be on the Y axis.