Equilibrium Price

This advanced level paper, by Michael Huemer, discusses and compares various theories of economic value. 

What just happened to the price of oil, and what does it tell us about the world?

In this video, we’ll review equilibrium in the adjustment process, showing that the equilibrium price is the only stable price. Then we’ll take a look at equilibrium quantity, where quantity demanded is equal to quantity supplied, and how this plays out in a free market economy that seeks to maximize gains from trade.