MARKET MECHANISM

*EQUILIBRIUM PRICE AND QUANTITY

IN A COMPETITIVE MARKET.
* CHANGES OF EQUILIBRIUM PRICE
&QUANTITY DUE TO CHANGES IN
DEMAND &SUPPLY.
• https://www.youtube.com/watch?v=7eZcPs9z
9OA –Equilibrium price and quantity.

• https://www.youtube.com/watch?v=ducr0_Lo
L_M --Market equilibrium.

• https://www.youtube.com/watch?v=nCYDkTL
2-U0 –Excess Demand& Excess Supply.
EQUILIBRIUM PRICE AND QUANTITY
 ASSIGNMENTS
1. Define equilibrium.
2. What is equilibrium Price ?
3. What is equilibrium quantity?
4. When is market said to be in a state of
equilibrium?
5. Define excess supply.
6.What is excess demand?
7. How is equilibrium price and quantity are
determined ?Show it diagrammatically.
 7. Find out equilibrium price &
quantity. Show it diagrammatically.
8. How do the forces of demand and supply
determine equilibrium price and quantity.
Explain with the help of a diagram.