MARKET

EQUILIBRIUM
STUDENT NAME - PRUSHTI DLSANIA
CLASSS - XI - COMMERCE
SUBJECT TEACHER - MR. RONAK SHAH

2022 - 23
 Introduction 03

Table of
Need & Objective 05

Content
Problem Identification 06

Hypothesis 07
This is the material point that
will be delivered in the
presentation. Scope Of Study 08

Bibliography 09
Introduction
Market Equilibrium
It is a state of market when demand
for a commodity is equal to its
supply, corresponding to a particular
price.
Market Supply
It refers to the sum total of supply for
a commodity by all the seller in the
market at a given price
Market Demand
It refers to the sum total of demand
for a commodity by all the buyers in
the market at a given price.
The price at which market
demand = market supply, is
called EQUILIBRIUM PRICE.
The quantity which corresponds
to the equilibrium price is called
EQUILIBRIUM QUANTITY
3 Basic 01
Price & quantity supplied are
positively related, or the supply
curve of a commodity slopes

Assumption
upward from left to right.

Price & quantity demanded are

02 negatively related, or that
demand curve of a commodity
slopes downward from left to
right.

03
Forces of supply & demand
operate freely without any
government intervention
 01.
It helps to understand the true potential of a
market.

02.
It helps adjudge the prices of products at the
desired level and offers consumers the
opportunity to indulge in a fair-priced market.

03.
It helps businesses affix the price and the
profitability of items.

NEED & 04.

To check the potential affordability of

OBJECTIVES consumers in the economy which gives the

insight into the purchasing power of
consumer
 Excess Demand (Shortage)

it refers to a situation in which market

demand for a commodity is more than its
market supply at a given price.

Excess Supply (Surplus)

Problem It refers to a situation in which market supply

Identification
of a commodity is more than its market
demand at a given price.
Hypothesis
01. Shift in Demand Curve
Decrease in demand
increase in demand
some exceptional situation

02. Shift in Supply Curve

Decrease in supply
Increase in supply
Some exceptional situation

03. Simultaneous Shift

Increase in Demand & Supply
Decrease in Demand & Supply
 Scope Of Study
Price Ceiling
It refers to the maximum price of a product,
as fixed by the government. Often ceiling
price is fixed lower than the equilibrium
price. Government fixes this price to ensure
the availability of essential commodities to
the weaker sections of the society
Price Floor
It is the minimum price of a commodity, as
fixed by the government. Often, this is
higher than the equilibrium price of the
commodity. nobody in the market can buy
the product at a price lower than the floor
price. Often this is equated with the support
price
 Thank You
Hopefully, you find this synopsis factually
accurate.