Define 'quantity demanded' as discussed in the video.

Quantity demanded is the specific amount of a product consumers are willing to buy at a particular price.

Explain what a shortage indicates to suppliers in the market.

A shortage indicates that the current price is too low, leading to higher demand than supply. This signals an opportunity for suppliers to increase prices and potentially increase production.

What is a surplus, and how do suppliers typically react to a surplus in the market?

A surplus is when the quantity supplied exceeds the quantity demanded. Suppliers typically react by lowering prices to attract more consumers and reduce the excess inventory. They may also decrease production.

Describe the process by which the market moves from a state of shortage to equilibrium.

In a shortage, consumers bid up prices, encouraging suppliers to increase production. As prices rise, demand decreases, and the market moves towards a point where quantity supplied equals quantity demanded, reaching equilibrium.

Describe the process by which the market moves from a state of surplus to equilibrium.

In a surplus, suppliers lower prices to attract consumers, which increases demand. As prices fall, suppliers reduce production, and the market moves towards a point where quantity supplied equals quantity demanded, reaching equilibrium.

Finding Price Equilibrium

Name: Finding Price Equilibrium
Author: Insta~Lesson

11th Grade · Economics · 45 min

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Learning Objective

I can explain how supply and demand interact to determine price equilibrium.

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Finding Price Equilibrium

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Related Lessons

Creating a Personal Budget

Exploring Alternative Economic Theories

Creating a Personal Budget

Related Lessons

Creating a Personal Budget

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Creating a Personal Budget

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