Principles of Macroeconomics / Unit 2 MAC 0106 short lesson, about 20 seconds
Equilibrium
Captions available
The idea
Equilibrium is the price at which quantity demanded equals quantity supplied. It is the only price with no pressure to change, and it sets the equilibrium quantity too.
In practice
The two curves cross at one point, and that point names both a price and a quantity.
Where people slip
Equilibrium does not mean fair or good. It means balanced, and nothing more.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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