How do you arrive at equilibrium?
It is where supply exceeds demand
It is where demand is equal to supply
It is where demand exceeds supply
Why is equilibrium important to consumers?
Consumers want to know the price level
Consumers do not want shortages of goods they demand
Consumers do not want excess supply
When there is excess supply:
There is downward pressure on prices
There is upward pressure on prices
There is downward pressure on quantity supplied
When demand increases:
The equilibrium price decreases, and the equilibrium quantity decreases
The equilibrium price decreases, and the equilibrium quantity increases
The equilibrium price increases, and the equilibrium quantity increases
When demand decreases:
The equilibrium price increases, and the equilibrium quantity decreases
When supply decreases:
The equilibrium price increase, and the equilibrium quantity decreases
When supply increases:
