Equilibrium price

Equilibrium price

quantity demanded equals quantity supplied; "market clearing price"

If prices are too high

more supply than demand- surplus

If prices are too low

less supply than demand- shortage

When demand increases

price increases, quantity increases

When demand decreases

price decreases, quantity decreases

When supply increases

price decreases and quantity increases

when supply decreases

price increases, quantity decreases

when demand increases and supply increases

price unknown, quantity increases

Demand decreases and supply decreases

price unknown, quantity decreases

Demand increases and supply decreases

price increases, quantity unknown

Demand decreases and supply increases

Price decreases and quantity unknown