asked 48.8k views
0 votes
How supply and demand determine equilibrium price and quantity in all types of markets

asked
User Shadin
by
8.3k points

1 Answer

1 vote

In the supply and demand model of price determination, there is never a surplus or shortage of goods at the equilibrium level. The market always settles at the point where supply equals demand. If demand increases (decreases) and supply is unchanged, then it leads to a higher (lower) equilibrium price and quantity.

Credit to draymontford

answered
User Kheya
by
7.5k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.