MARKET EQUILIBRIUM

  Market Equilibrium is when the quantity demanded and the quantity supplied at a particular price are EQUAL.   Equilibrium Price is the price at which the quantity demanded and the quantity supplied are equal.

Price per Slice Quantity Demand Quantity Supplied $ $ $ $ $ Quantity Price $1 $3 $4 $2 $5 $6 60

Quantity Price A SURPLUS is when the quantity supplied is greater than the quantity demanded.

Quantity Price A SHORTAGE is the result of quantity demanded is greater than quantity supplied.

If neither a shortage or surplus exists, then the market is at equilibrium!

  Market Disequilibrium is when quantity demanded and quantity supplied are NOT in balance.   Equilibrium again is when quantity demanded and quantity supplied ARE in balance.

  The time period between the change in demand and change in equilibrium price is known as DISEQUILIBRIUM and-demand-affect-market-equilibrium.html

  If demand decreases, or supply increases then equilibrium price goes _____________ 0 Quantity Price $1 $3 $4 $2 $5 $6 60 DOWN

  If demand increases OR supply decreases, equilibrium price goes _____________ 0 Quantity Price $1 $3 $4 $2 $5 $6 60 UP

If demand decreases OR Supply increases THEN If demand increases OR Supply decreases THEN Supply and Demand Review video:

0 Quantity Price $5 $15 $20 $10 $25 $30 30