Market equilibrium Market Market demand supply gEs(p) D(p*)=S(p*); the market is in equilibrium p qeD(p) q D(p), s(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* q* D(p*) = S(p*); the market is in equilibrium
Market equilibrium Market Market demand supply gEs(p) D(p)<s(p); an excess pp of quantity supplied over quantity demanded qeD(p) D(p) s(p) D(p), s(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* S(p’) D(p’) < S(p’); an excess of quantity supplied over quantity demanded. p’ D(p’)
Market equilibrium Market Market demand supply gEs(p) D(p)<s(p); an excess pp of quantity supplied over quantity demanded qeD(p) D(p) s(p) D(p), s(p) Market price must fall towards p
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* S(p’) D(p’) < S(p’); an excess of quantity supplied over quantity demanded. p’ D(p’) Market price must fall towards p*
Market equilibrium Market Market demand supply gEs(p) D(p)>s(p);an excess of quantity demanded over quantity supplied p qeD(p) s(p)D(p”)D(p),S(p)
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* D(p”) D(p”) > S(p”); an excess of quantity demanded over quantity supplied. p” S(p”)
Market equilibrium Market Market demand supply gEs(p) D(p)>s(p);an excess of quantity demanded over quantity supplied. p qeD(p) s(p”)D(p)D(p),S(p) Market price must rise towards p
Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* D(p”) D(p”) > S(p”); an excess of quantity demanded over quantity supplied. p” S(p”) Market price must rise towards p*