GMGT 1010 Lecture Notes - Lecture 13: Equilibrium Point, Economic Equilibrium, Negative Relationship

• School: University of Manitoba
• Department: General Management
• Course: GMGT 1010
• Professor: Brock V.Cordes

Document Summary

If the seller lowers the price, the quantity demanded is likely to increase. Supply: the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time: willingness to sell . The amount supplied will increase as the price increases because sellers can make more money with a higher price. All things bring equal, the higher the price, the more the vendor will be willing to supply. Demand: the quantity of products that people are willing to buy at different prices at a specific time: willingness to buy . The quantity demanded will increase as the price decreases. The key factor in determining the quantity supplied and the quantity demanded is price. Sellers prefer a high price, and buyers prefer a low price. No shortage and no surplus at this point. That crossing point is known as the equilibrium point or the equilibrium price. In the long-run, that price would become the market price.