Principles of Microeconomics / Unit 2 MIC 0107 short lesson, about 20 seconds
Surplus and Shortage
Captions available
The idea
Above equilibrium, quantity supplied exceeds quantity demanded: a surplus, and sellers cut the price. Below it, demand exceeds supply: a shortage, and the price is bid up.
In practice
Unsold coffee piles up at a high price; shelves empty at a low one.
Where people slip
A surplus is not too much of a good, only too much at this price, and the price fixes it.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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