ECON101: Principles of Microeconomics

2.4: Market Equilibrium

• When left alone, a market will move to equilibrium; in other words, the market price will move to the level at which the quantity supplied equals the quantity demanded. However, this outcome can be both desirable and undesirable for buyers or sellers.
  

• Principles of Microeconomics: "Chapter 3, Section 3: Demand, Supply, and Equilibrium"

  Read this section to learn how demand and supply interact with one another to determine prices and quantities that may or may not be optimal. Attempt the "Try It” problem. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These outcomes should be your goals as you read through the chapter. This reading also covers the topics outlined in subunits 2.4.1-2.4.3.

• 2.4.1: Market Equilibrium

  • Khan Academy's "Market Equilibrium" Page

    Watch this video about market equilibrium.
    

• 2.4.2: Market Surplus and Shortage

  • This topic is covered by the material in subunit 2.4. Focus on the discussion of surplus and shortages from pages 3 to 6.
    

• 2.4.3: Simultaneous Shifts in Supply and Demand

  • Khan Academy's "Changes in Market Equilibrium" Page

    Watch this video about changes in market equilibrium.
    

• 2.4.4: Putting Demand and Supply to Work

  • Principles of Microeconomics: "Chapter 4, Section 1: Putting Demand and Supply to Work"

    Read this section to learn about some applications of the demand and supply model. Attempt the "Try It” problem.
    

  • Boundless: "Introducing Supply and Demand"

    Read each section of this chapter for a mathematical exposition of the demand and supply model. The chapter also covers price ceilings and price floor analysis as well as quantity regulations.