NCEA ECO Level 1 - 1.4 - Market Equilibrium

Place or situation where buyers and sellers exchange goods and services

The price at which quantity demanded equals quantity supplied

Horizontal sum of all firm's demand curves at each price

An increase in supply is shown by:

Where the supply curve and demand curve intersect

Horizontal sum of all firm's supply schedules at each price

Firms will accept lower prices when

Excess demand is most commonly known as

Consumers bid up the price when there is a

At equilibrium the market will clear and there will be neither a surplus nor a shortage