Question

briefly explain how equilibrium price is determined with the help of demand and supply curve​

Answer 1

Answer:

Use demand and supply to explain how equilibrium price and quantity are determined in a market.

Use demand and supply to explain how equilibrium price and quantity are determined in a market.Understand the concepts of surpluses and shortages and the pressures on price they generate.

Use demand and supply to explain how equilibrium price and quantity are determined in a market.Understand the concepts of surpluses and shortages and the pressures on price they generate.Explain the impact of a change in demand or supply on equilibrium price and quantity.

Use demand and supply to explain how equilibrium price and quantity are determined in a market.Understand the concepts of surpluses and shortages and the pressures on price they generate.Explain the impact of a change in demand or supply on equilibrium price and quantity.Explain how the circular flow model provides an overview of demand and supply in product and factor markets and how the model suggests ways in which these markets are linked.

Use demand and supply to explain how equilibrium price and quantity are determined in a market.Understand the concepts of surpluses and shortages and the pressures on price they generate.Explain the impact of a change in demand or supply on equilibrium price and quantity.Explain how the circular flow model provides an overview of demand and supply in product and factor markets and how the model suggests ways in which these markets are linked.In this section we combine the demand and supply curves we have just studied into a new model. The model of demand and supply uses demand and supply curves to explain the determination of price and quantity in a market.

Use demand and supply to explain how equilibrium price and quantity are determined in a market.Understand the concepts of surpluses and shortages and the pressures on price they generate.Explain the impact of a change in demand or supply on equilibrium price and quantity.Explain how the circular flow model provides an overview of demand and supply in product and factor markets and how the model suggests ways in which these markets are linked.In this section we combine the demand and supply curves we have just studied into a new model. The model of demand and supply uses demand and supply curves to explain the determination of price and quantity in a market.The Determination of Price and Quantity

Use demand and supply to explain how equilibrium price and quantity are determined in a market.Understand the concepts of surpluses and shortages and the pressures on price they generate.Explain the impact of a change in demand or supply on equilibrium price and quantity.Explain how the circular flow model provides an overview of demand and supply in product and factor markets and how the model suggests ways in which these markets are linked.In this section we combine the demand and supply curves we have just studied into a new model. The model of demand and supply uses demand and supply curves to explain the determination of price and quantity in a market.The Determination of Price and QuantityThe logic of the model of demand and supply is simple. The demand curve shows the quantities of a particular good or service that buyers will be willing and able to purchase at each price during a specified period. The supply curve shows the quantities that sellers will offer for sale at each price during that same period. By putting the two curves together, we should be able to find a price at which the quantity buyers are willing and able to purchase equals the quantity sellers will offer for sale.

“The Determination of Equilibrium Price and Quantity” combines the demand and supply data introduced in .“A Demand Schedule and a Demand Curve” and Figure 3.8 “A Supply Schedule and a Supply Curve” Notice that the two curves intersect at a price of $6 per pound—at this price the quantities demanded and supplied are equal. Buyers want to purchase, and sellers are willing to offer for sale, 25 million pounds of coffee per month. The market for coffee is in equilibrium. Unless the demand or supply curve shifts, there will be no tendency for price to change. The equilibrium price in any market is the price at which quantity demanded equals quantity supplied. The equilibrium price in the market for coffee is thus $6 per pound. The equilibrium quantity is the quantity demanded and supplied at the equilibrium price