Equilibrium

Determine whether events cause a shift in the supply and demand curve using the interactive practice tool below.

Does the equilibrium model work? Nobel Prize winner Vernon Smith conducted experiments testing this model.

A classroom activity designed by the Federal Reserve Bank of Atlanta.

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.

A brief video on economic equilibrium, presented by Paul Solman.