ECON 1050 Chapter 3: Economics-1 (1) (dragged) 5
17 Sep 2016
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Equilibrium is a situation in which opposing forces balance each other. Equilibrium in a market occurs when the price balances the plans of buyers and sellers. The equilibrium price is the price at which the quantity demanded equals the quantity supplied. The equilibrium quantity bought and sold at the equilibrium price- sensitive: price regulates buying and selling plans, price adjusts when plans don"t match. The figure alongside the market equilibrium the price at which quantity demanded equals quantity supplied. If the price is a bar, the quantity supplied exceeds the quantity demanded. There is a surplus of 6 million energy bars. If the price is a bar, the quantity demanded exceeds the quantity supplied. If the price is . 50 a bar, the quantity supplied equals the quantity demanded. At price above the equilibrium price, a surplus forces the price down. At prices below the equilibrium price, a shortage forces the price up.
