https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y en-us 2017-04-30 10:36:55 UTC 2025-09-28 17:39:01 UTC hello@padlet.com ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050183 A market is any arrangement whereby buyers and sellers interact and an economic exchange occurs - the price and quantity of goods or services exchanged is determined.
The buyer and seller have different viewpoints about price. When price increase, quantity demanded decrease whereas quantity supplied increase]]> 2017-04-30 10:38:34 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050183 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050366 The point where the demand curve and the supply curve intersects.
The y-coordinate of the point is known as the equilibrium price whereas the x-coordinate of the point is known as the equilibrium quantity]]> 2017-04-30 10:43:13 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050366 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050445 When the market is not in equilibrium, the market is either in surplus or in shortage.
If price is above the equilibrium price, the quantity demand is lower and the quantity supply is higher, resulting in the supply exceeding the demand. This result in a surplus. To reduce surplus, the firm will reduce price with the attempt to decrease quantity supplied and increase quantity demanded until the market reaches equilibrium
If the price is below the equilibrium price, the quantity demanded is higher and the quantity supplied is lower, resulting in demand exceeding supply. This result in shortage. To reduce shortage, the firm will increase price to increase quantity supplied and decrease quantity demanded until the market reaches equilibrium. ]]> 2017-04-30 10:45:31 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050445 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050615 The government may intervene and set a price ceiling and a price floor even when the market achieves equilibrium. 
A price ceiling is imposed when the current equilibrium price is deemed high. The price ceiling require a decrease in price. This cause an increase in demand and decrease in supply, resulting in market shortage.
A price floor is imposed when the current equilibrium price is deemed low. The price floor require an increase in price. This cause a decrease in demand and increase in supply, resulting in market surplus]]> 2017-04-30 10:51:03 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/169050615 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283272 When the demand change, supply change or both change, the equilibrium price and quantity will change. ]]> 2017-05-06 01:56:00 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283272 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283304 When the demand increase and the supply remains the same, the equilibrium price will increase, so is the equilibrium quantity.
If the price still remain at its original equilibrium price, it will cause a shortage because the demand is more than the supply
Similarly, when the demand increase and the supply remains the same, the equilibrium price and equilibrium quantity will decrease. 
If the price still remain at the original equilibrium price, a shortage occurs because the supply is more than the demand]]> 2017-05-06 01:57:29 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283304 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283393 When the supply increase and the demand remains the same, the equilibrium price will decrease and the equilibrium quantity will increase. If the price remains at the original equilibrium price, it will result in a surplus as the supply exceeds the demand
Similarly, when the supply decrease and the demand remains the same, the equilibrium price will increase and the equilibrium quantity will decrease. If the price remains at the original equilibrium price, it will result in a shortage because the demand exceeds the supply]]> 2017-05-06 02:01:39 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283393 ronaldoyee_161 https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283475 When both demand and supply increases, the equilibrium quantity will increase but we cannot conclude the change in equilibrium price
When both demand and supply decrease, the equilibrium quantity will decrease but we cannot conclude the change in
equilibrium price
When demand increase and supply decrease, the equilibrium price will increase but we cannot conclude the change in equilibrium quantity
When demand decrease and supply increase, the equilibrium price will decrease but we cannot conclude the change in equilibrium quantity]]> 2017-05-06 02:05:04 UTC https://padlet.com/ronaldoyee_161/m4d2u9hdmj5y/wish/170283475