In class (as you might know already) we are studying sustainability and part of sustainability is economics and for economics we are studying supply and demand. We have looked at a few graph like the one above and on each graph there is and equilibrium point which is where the price and quantity meet. The price goes up when there is a high demand and low quantity (example: "There are shoes on the market but we can't afford them."). But the producer will lower the price if there is a high demand and a high quantity and then the consumer is more likely to buy (example: "Here are some shoes and we can afford them. Lets by them.") .
For more information visit: http://www.brainpop.com/socialstudies/economics/supplyanddemand/
You might find more about the relationship between supply and demand.
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