• Deprecated function: Optional parameter $path declared before required parameter $arg is implicitly treated as a required parameter in include_once() (line 1439 of /var/www/quickstart.cals.arizona.edu/includes/bootstrap.inc).
  • Deprecated function: http_build_query(): Passing null to parameter #2 ($numeric_prefix) of type string is deprecated in media_oembed_default_callback() (line 64 of /var/www/quickstart.cals.arizona.edu/profiles/ua_quickstart/modules/contrib/media_oembed/plugins/providers/default.inc).

Exploring Equilibrium

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.

Equilibrium Supply Demand Equilibrium Price