MARKET

EQUILIBRIUM

Presented by:

Raishell A. Cauilan
Market
Equilibrium
Supply = Demand

The condition in which the quantity

demanded of a good or service at a
particular price is equal to the quantity
supplied at that price.
Equilibrium Price
The price which the quantity demanded
and quantity supplied are equal.

Equilibrium

Quantity
The quantity bought and sold at the
equilibrium price.
 SURPLUS
or excess supply occurs when quantity supplied is greater
than quantity demanded.
This results in the decrease of prices in the market.
Qs > Qd
SHORTAGE
or excess demand happens when the

quantity demanded is greater than the

quantity supplied. This results in the

increase of prices in the market.

Qd > Qs
Thank you!