MARKET EQUILIBRIUM Price determination using Demand and Supply P = f (Qd,Qs) (Qd,Qs) MARKET EQUILIBRIUM The interaction of buyers and sellers in the market leads to market…
MARKET EQUILIBRIUM Price determination using Demand and Supply P = f (Qd,Qs) (Qd,Qs) MARKET EQUILIBRIUM The interaction of buyers and sellers in the market leads to market…
Slide 1 At price P 3 quantity demanded equals quantity supplied-- Increase Demand With Supply Constant, Equilibrium Price and Quantity Both Increase. S D2D2 E1E1 E2E2 D1D1…
When We Don’t “Like” the Market Outcome The Effect of Price Floors, Price Ceilings Tariffs, Quotas, Subsidies and Externalities on the Market Outcome Price Ceilings…