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Case Studies Index

What is Supply?... Continued

d) Market Equilibrium

Finally, when the supply curve and demand curve are once more overlapped on each other, they again reveal either a disequilibrium or equilibrium. However, in this case as shown in Fig. 9 on the left reveals equilibrium.

For example;
At P = 15,
Quantity demanded = 50 and
Quantity supplied = 50

Therefore at P = 15, there is an equilibrium (i.e., Qs = Qd = 50).

Neither surplus nor shortage results so the market clears and is stable

outcomes
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