Market
equilibrium:
Market is an arrangement through which buyers and sellers contact each other to
do transaction Consumers bring demand to the market for buying goods to satisfy
their goods to the market to sell them and earn profits.
How
the market demand and supply determine prices and quantities exchange are
illustrated in table-1 and which has also been graphically show in fig-1
Price (tk)
|
Qd
|
Qs
|
Surplus(+)
Supplied(-)
|
10
|
200
|
400
|
+200
|
9
|
300
|
300
|
Market clears
|
8
|
400
|
200
|
-200
|
Table-1:
Explanation: From the
table-1 and fig-1 we see that at price 9 tk quantity demand equals quantity
supplied. Thus at price 9 tk the forces of demand and balanced. Price of tk 9
at which quantity demand equals quantity supplied is called the equilibrium
price and quantity of this good equals to 300, at this equilibrium price is
called the equilibrium quantity
No comments:
Post a Comment