O'Reilly logo

The Complete Idiot's Guide to Economics, 2nd Edition by Tom Gorman

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Equilibrium: Mr. Demand, Meet Mr. Supply

The beauty of the market is that the competing motivations of consumers and producers interact to arrive at a price and quantity for a product that’s determined by impersonal market forces. You’ve heard the expression market price (or seen it written on menus next to the word lobster). The market price for a product is the price at which the quantity demanded is equal to the quantity supplied. Figure 4.5 shows how this occurs.
061
Figure 4.5
The arrows along the supply and demand curves in this chart indicate the pressures at work in the market for beef (or any market, for that matter). To understand how ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required