Why an equilibrium is defined as a price?
Added by Kimberly S.
Step 1
This is represented by the intersection of the supply and demand curves on a graph. Show more…
Show all steps
Your feedback will help us improve your experience
Pavitr Ahuja and 67 other Macroeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Explain the concept of an equilibrium price; carefully explaining in what way the price is an equilibrium price. Your explanation should include how market forces restore equilibrium if it is disturbed.
Jennifer S.
Why is the market always moving toward equilibrium?
Haricharan G.
When the price is above the equilibrium, explain how market forces move the market price to equilibrium. Do the same when the price is below the equilibrium.
Recommended Textbooks
Principles of Economics
Macroeconomics
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD