Please enable JavaScript.
Coggle requires JavaScript to display documents.
market equilibrium - Coggle Diagram
market equilibrium
excess supply and demand
-
the higher price makes it more profitable for petrol producers, so output expands
-
when quantity demanded exceeds quantity supplied, there is excess demand
-
equilibrium price
the only price where the amount of consumers want to buy is equal to the amount producers want to sell
if the market is at equilibrium, there is no reason to move away
-
disequilibrium
-
-
e.g. if petrol prices were to rise above their equilibrium level, the market would respond and the quantity demanded would fall
-