Equilibrium

In the previous articles we learned about the two sides of the market: supply and demand. So what's the point of  learning about price and quantity demanded of suppliers and consumers? When we combine these ideas, we can understand the market as a whole!

Eq’m (Equilibrium) occurs at the price where quantity demanded = quantity supplied

You may have noticed that our demand and supply graphs had the same Y-axis and X-axis. This allows us to combine the graphs to show the Market for a particular good. 

Let’s continue to use our example of the white sneaker market. 

Recall the demand schedule for white sneakers that shows the relationship between price and quantity demanded. 

Price of White Sneakers ($)Quantity Demanded 
$10 5
$1502
$2001

Also recall the supply schedule for white sneakers which shows the relationship between price and quantity supplied. 

Price of White Sneakers ($)Quantity Supplied
$1001
$1502
$2003

Now, let's plot these two schedules on the same graph. 

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