Econ: Graphing Changes in Supply Demand Equilibrium

Equilibrium Price
We practiced changes in market equilibrium. We began with a review of supply and demand shifters. Then we worked on graphing shifts in supply and demand. A market moves to a new equilibrium when there is a shift in either supply or demand. In the short term, a shortage will occur if quantity demanded exceeds quantity supplied, a surplus will occur if quantity supplied exceeds quantity demanded. Market price and quantity sold adjust, and buyers and sellers change their behavior over time.

1) Read 6.6 pp.112-115



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