Equilibrium Price & Quantity

If Supply and Demand are often imbalance, what happens when the two are equal? 🤓

Let's dive in!

💡Equilibrium Price & Quantity = when supply and demand are equal, prices remain stable 🤔

Think of it like a seesaw: when the supply and demand are equal, the seesaw stays balanced. 🤹‍♂️

Let's look at an example using stocks 📈

Say there are 10 shares of stock available, and 10 people want to buy it. 🤝

The equilibrium price & quantity is 10 shares at the current market price 💰

Equilibrium price & quantity is a mouthful, but it’s the point where supply and demand are equal! 😮

The equilibrium price & quantity is determined by the market forces of supply and demand 🤝

When the market is in equilibrium, the price and quantity of the stock remain stable 🤹‍♂️

Equilibrium Price & Quantity is an important concept in economics that helps us understand how markets work, plus it gives us an understanding of when a stock’s price may be stable. 🤩