Market Equilibrium (市场均衡) In Figure 1.3, the demand and supply curve intersect at the market equilibrium point pk, Q* Px is the equilibrium price: The price at which the quantity demanded by buyers of a good is equal to the quantity supplied by sellers of the good Chapter 1
Chapter 1 40 Market Equilibrium （市场均衡） In Figure 1.3, the demand and supply curve intersect at the market equilibrium point P*, Q* P* is the equilibrium price: The price at which the quantity demanded by buyers of a good is equal to the quantity supplied by sellers of the good
FIGURE 13: The marshall Supply-Demand Cross Price I Demand Supply quIlibrium po 0 Quantit Q per week Chapter 1
Chapter 1 41 FIGURE 1.3: The Marshall Supply-Demand Cross Price Deman d Supply P* . Equilibrium point 0 Quantity per week Q*
Market Equilibrium i Both demanders and suppliers are satisfied at this price, so there is no incentive for either to alter their behavior unless something else happens Marshall compared the roles of supply and demand in establishing market equilibrium to the two blades of a pair of scissors working together in order to make a cut Chapter 1
Chapter 1 42 Market Equilibrium Both demanders and suppliers are satisfied at this price, so there is no incentive for either to alter their behavior unless something else happens Marshall compared the roles of supply and demand in establishing market equilibrium to the two blades of a pair of scissors working together in order to make a cut
Nonequilibrium outcomes If something causes the price to be set above p* demanders would wish to buy less than Q* while suppliers would produce more than Q* If something causes the price to be set below p* demanders would wish to buy more than Q* while suppliers would produce less than Q* Chapter 1
Chapter 1 43 Nonequilibrium Outcomes If something causes the price to be set above P*, demanders would wish to buy less than Q* while suppliers would produce more than Q* If something causes the price to be set below P*, demanders would wish to buy more than Q* while suppliers would produce less than Q*
Change in Market Equilibrium Increased demand Figure 1. 4 shows the case where people's demand for the good increases as represented by the shift of the demand curve from d to d A new equilibrium is established where the equilibrium price has increased to p*>x Chapter 1
Chapter 1 44 Change in Market Equilibrium: Increased Demand Figure 1.4 shows the case where people’s demand for the good increases as represented by the shift of the demand curve from D to D’ A new equilibrium is established where the equilibrium price has increased to P**