day 5 part 6 Economics: Competitive Equilibrium and Market Dynamics

This set explores the concepts of competitive equilibrium, market surpluses and shortages, and the supply-demand case study of brown versus white eggs.

Competitive Equilibrium

The point where the market demand curve and supply curve intersect, determining the equilibrium price and quantity.

Competitive Market

A market where there are enough buyers and sellers so that buyers compete with other buyers and sellers compete with other sellers.

Excess Supply (Surplus)

A situation where the quantity supplied is greater than the quantity demanded.

Shortage (Excess Demand)

A situation where quantity demanded exceeds quantity supplied because the market price is below the equilibrium level.