Which direction does the demand line go: down. Which direction does the supply line go: Up . The unique price and quantity established at the intersection of the supply and demand curves is called: Equilibrium . Points above the equilibrium point are considered to be a: Surplus. Points below the equilibrium point are considered to be a? : Shortage. This states that there is an inverse relationship between the price and quantity demanded, ceteris paribus: Law of Demand. This states that there is an inverse relationship between the price and quantity supplied, ceteris paribus: Law of Supply. What is the equilibrium point: