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• # Another way to think about equilibrium

Economics

Inyang Umoh (tutor)
19-02-2016 07:45:00 +0000

Since there are several questions about equilibrium, I will try to explain it another way.

Equilibrium is a very very simple concept. The official definition from the English dictionary is "a state of rest or balance due to the equal action of opposing forces." In the case of market equilibrium, the opposing forces are those of supply and demand. There are only three states a market can be in
1) shortage - more demand than the supply
2) surplus - more supply than the demand
3) equilibrium - supply and demand are equal

Please review the attached diagram and see if you can fill in the values in the table. For the last column called "market condition" fill in whether it is a shortage, surplus or equilibrium.

• Paul Thafinexx

the demand and supply at the three respective lines are at equilibrium

0 19-02-2016 09:38:00 +0000

• Inyang Umoh (tutor)

@paul try to fill in the table below the graph. that's the best way to demonstrate that you understand the material

0 20-02-2016 05:15:00 +0000

• EXODUS MATHIAS

I don't really knw Hw to solve it

0 20-02-2016 09:45:00 +0000

• Anyanwu Solomon

pls can treat the topic public finance

0 20-02-2016 10:23:00 +0000

• Inyang Umoh (tutor)

Since some people are struggling with this one, I will provide a hint. Look at this image and then see if you can now fill in the remaining cells

0 22-02-2016 05:50:00 +0000

• mariam shodipo

the equilibrium price is 140.that's where demand and supply is equal. we don't have excess demand but surplus supply

0 22-02-2016 09:53:00 +0000

• mariam shodipo

oh sorry just got it now the blue line represent excess deman and the green is surplus supply.lol silly mistakes

0 22-02-2016 09:55:00 +0000

• Tola Shalex

on international trade , can any one explain the theory on it pls

0 22-02-2016 10:06:00 +0000

• Inyang Umoh (tutor)

@mariam that's correct and the red line represents equilibrium.

0 22-02-2016 17:23:00 +0000

• olasunkanmi ogidiolu

the blue line at price 100, has 800 as qd and 500 as qs, therefore, the market condition is shortage.

0 23-02-2016 06:28:00 +0000