What you’ll learn to do: explain and graphically illustrate market equilibrium, surplus, and shortage

In this section, you’ll learn how supply and demand interact to determine the price in a market.

The specific things you’ll learn in this section include the following:

• Define and explain equilibrium price and quantity
• Create a graph that illustrates equilibrium price and quantity
• Define and explain surpluses and shortages
• Create a graph that illustrates surpluses and shortages
• Describe how disequilibrium can create surpluses and shortages; explain how markets eliminate them

Learning Activities

The learning activities for this section include the following:

• Reading: Equilibrium, Surplus, and Shortage
• Video: Market Equilibrium
• Reading: Changes in Equilibrium
• Worked Example: Supply and Demand
• Simulation: Food Trucks and Changes in Equilibrium
• Self Check: Equilibrium