Why is gasoline typically more expensive in the summer?
Equilibrium price: The price for which Q = Q s d
Equilibrium quantity: the quantity that corresponds to equilibrium price
If Q > Q there is a surplus
Stocks build up and firms decrease price until equilibrium is restored
If Q < Q there is a shortage
Concerts are a good example of excess demand
-the supply for seats at some point is fixed whereas apple can make more iPhone 5’s