The word equilibrium means balance. If a market is at its equilibrium price and quantity, then it has no reason to move away from that point. However, if a market is not at equilibrium, then …

MARKETS: Equilibrium is achieved at the price at which quantities demanded and supplied are equal. We can represent a market in equilibrium in a graph by showing the combined price …

By graphing the demand and supply curves, you'll learn how different prices impact the quantity supplied and demanded. You'll also learn how shortages and surpluses arise, how they are …

How do economists study markets, and how is a market influenced by changes to the supply of goods that are available, or to changes in the demand that buyers have for certain types of …

This chapter explores how equilibrium price and quantity are determined in a perfectly competitive market through the interaction of market demand and market supply. It explains the concept of …

Practice what you have learned about how a market generates an equilibrium price and quantity, and the cause of surpluses and shortages in this exercise.

Consumer surplus is the gap between the price that consumers are willing to pay—based on their preferences—and the market equilibrium price. Producer surplus is the gap between the price …

When supply or demand change, the price and quantity in the market changes. See how a change in demand or supply affects price and quantity in this video.

Let's start thinking about changes in equilibrium price and quantity by imagining a single event has happened. It might be an event that affects demand—like a change in income, population, …

Price ceilings are enacted in an attempt to keep prices low for those who demand the product—be it housing, prescription drugs, or auto insurance. But when the market price is not allowed to …