Bringing Supply and Demand Together

Bringing Supply and Demand Together

• Bringing Supply and Demand Together

The market equilibrium is found at the point at which the market supply and market demand curve intersect.

• The market equilibrium is found at the point at which the market supply and market demand curve intersect.
• The price at the intersection of the market demand curve and the market supply curve is called the equilibrium price.
• The quantity at the intersection of the market demand curve is called the equilibrium quantity.

• Market Equilibrium

At the equilibrium price, the quantity demanded equals the quantity supplied—the amount that buyers are willing and able to buy is exactly equal to the amount that sellers are willing and able to produce.

• At the equilibrium price, the quantity demanded equals the quantity supplied—the amount that buyers are willing and able to buy is exactly equal to the amount that sellers are willing and able to produce.
• If the market price is at any other price, their will be a shortage or a surplus.

• Markets in Temporary Disequilibrium