Скачать или смотреть Market Equilibrium | Microeconomics

In this video, I show how the market demand curve and the market supply curve determine the market equilibrium. In the market equilibrium, demand equals supply at the equilibrium price. In addition, I discuss how the economy converges to the equilibrium whenever supply and demand are not in balance. In the case of excess demand, the price increases, which reduces demand and raises supply until the two are balanced again. In the case of excess supply, the reverse holds true: the price decreases, which raises demand and reduces supply.

For the properties and derivations of market demand and market supply curves, please refer to the previous lectures:

   • The Demand Curve | Microeconomics  
   • The Market Demand Curve | Microeconomics  
   • The Supply Curve | Microeconomics  
   • The Market Supply Curve | Microeconomics  

For the effects of changes in demand and supply on the market equilibrium, please see the next three videos of this lecture series:

   • Demand Shocks | Microeconomics  
   • Supply Shocks | Microeconomics  
   • Combined Supply and Demand Shocks | Microe...  

For the playlist on Basic Economic Concepts, please visit

   • Economics in a Nutshell: Concepts and Models