Macroeconomics
In the following schedule for example, equilibrium occurs at a price of$140whereboththequantity demanded and quantity supplied are equal to 400 units. Atthispricelevel,themarket“clears”since producers are supplying what consumers demand.
Table 4: Market Equilibrium Price of a Tablet ($)
Quantity of Tablets Demanded
Quantity of Tablets Supplied
80
700
100
100
600
200
120
500
300
140
400
400
160
300
500
180
200
600
200
100
700
Thisequilibriumisrepresentedgraphicallybyplottingthedemand(D)andsupply(S)curvesonthesame diagram. The intersection point between the two curves represents the equilibrium price and quantity (point X below).
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