Market
Equilibrium
, Topic Learning
Outcomes
At the end of this topic, student should be able :
1.to determine equilibrium price and output
2.to explain effects of changes in demand and
supply on equilibrium price and output
3.to discuss government intervention in the
market
, Market Equilibrium
Definition
market equilibrium exists when quantity
demanded (Qd) equals quantity supplied (Qs).
it can be determined by the intersection between
demand and supply curves.
at equilibrium, there is no tendency for the
market price to change.