Summary of Equilibrio de mercado | Cap. 5 - Microeconomía
Market equilibrium is when the demand and supply curves intersect, resulting in a price and quantity where both buyers and sellers are satisfied.
- If the price is above the equilibrium price, there is an oversupply, leading sellers to lower the price to reach equilibrium.
- If the price is below the equilibrium price, there is excess demand, leading sellers to raise the price to reach equilibrium.
- Market forces will always bring the price to equilibrium, regardless of the initial price.
Notable Quotes
— 00:16 — « At point A, where the curves cross, it is called market equilibrium; Here the equilibrium price is 3 dollars and the equilibrium quantity is 6 soft drinks. This means that at this point, both sellers and buyers are satisfied. »
— 00:56 — « The next step for sellers is to reduce the price; lowering the price increases the quantity demanded and reduces the quantity offered, thus returning to the break-even point. »
— 01:09 — « At that lower price buyers cannot get all the soft drinks they want because sellers at that price offer only 3 and buyers demand 8 soft drinks. In this case there is an excess demand. »
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