Problem
Sellers alone do not set prices and buyers alone do not set prices. It is the interaction of buyers and sellers that sets prices.
a) Explain where the market equilibrium occurs.
b) How do we show equilibrium graphically?
c) Share an example from your own experience when the market was not in equilibrium for a product or service.
d) Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium.
Reference:
Asarta, C. J., Butters, R. (2022). Connect master principles of economics. McGraw-Hill.