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Thed marketd equilibriumd occursd whend there'sd nod tendencyd ford priced changes.d Ad marketd
occursd whend buyersd andd sellersd meetd tod exchanged moneyd ford goodsd andd servicesd asd well.
Graphicallyd thisd isd drawnd outd byd thed intersectiond ofd thed demandd andd supplyd curve.d whend
thesed ared met,d thed equalityd ofd thed quantityd demanded,d andd quantityd suppliedd isd and
indicatord ofd thed establishedd equilibrium.d Thatd isd howd wed determined howd wed drawd outd
thed equilibriumd graphically.Fromd personald experienced thed marketd hasd notd beend ind
equilibriumd ford toiletriesd andd haird servicesd ared thed maind thingsd thatd hasd stoodd outd tod me.d
Id recentlyd wentd tod grabd thingsd ford myd householdd atd ourd locald supermarketd andd wasd
shockedd atd howd muchd pricesd haved surprisinglyd jumpedd ind suchd shortd time.d Tabled
napkinsd thatd Id wouldd purchased ford ourd dinnerd tabled hasd goned fromd $2d ford $5d ind aboutd
twod years.d Thatd isd overd doublingd ind price!d I'ved alsod no0ticedd h0wd thed braidd marketd ford
haird hasd jumpedd tremendouslyd fromd 3d yearsd ago.d Thed pricesd ford braidsd thatd usedd tod bed
$100d hasd jumpedd tod startingd atd $200d ind manyd haird shops.d Thisd isd becaused thed productd
amountd ford thesed itemsd hasd alsod changedd ford thed warehoused whichd spikedd asd risingd costd
ind ourd haird storesd asd well.d Marketd equilibriumd isd ad marketd stated ind whichd thed supplyd ind
thed marketd isd equald tod thed demandd ind thed market.d Thed equilibriumd priced isd thed feed ofd ad
itemd ord serviced whend thed supplyd ofd itd isd equald tod thed demandd ford itd ind thed market.d Ifd ad
marketd isd atd equilibrium,d thed feed willd notd alternated untild and exteriord elementd adjustd thed
supplyd ord demand,d whichd resultsd ind ad disruptiond ofd thed equilibrium.d Thed cored themed ofd
microeconomicsd isd thed placingd ofd thed marketd price.d Asd ad result,d microeconomicd conceptd
isd oftend referredd tod asd pricingd theory.d Whend thered isd ad differenced ind supplyd ord demand,d
thed oldd rated willd nod longerd bed and equilibrium.d Instead,d thered willd bed ad scarcityd ord
surplus,d andd feed willd asd ad resultd alterd untild thered isd ad newd equilibrium.
Marketd equilibriumd occursd whend thed quantityd suppliedd equalsd thed quantityd demanded.d
Thisd happensd throughd thed interactiond ofd buyersd andd sellers.d Graphicallyd thisd isd shownd
whend thed demandd andd supplyd intersect.d
And exampled ofd whend ad marketd isd outd ofd equilibriumd wouldd bed when,d ford example,d ad
groceryd stored hasd tod markd downd pricesd ond foodd thatd isd aboutd tod expire.d Ind orderd tod selld
thed excessd supply,d groceryd storesd willd selld almostd expiredd foodd atd ad discountedd price,d
thisd causesd consumersd tod purchased thed foodd becaused itd isd cheaper.d
Ind orderd tod bringd thed marketd backd intod equilibrium,d theyd wouldd needd tod notd orderd asd
muchd inventoryd ind thed productsd thatd hadd excessd items.d Payingd attentiond tod whatd isd
boughtd mostd atd yourd stored willd helpd youd tod determined whatd yourd inventoryd shouldd be.d Ifd
youd ared leftd withd excessd goodsd ord notd enoughd goods,d thend youd wouldd needd tod monitord
yourd salesd andd yourd inventory.
Myd lastd placed ofd employmentd constantlyd hadd excessd candy.d Oned dayd whend Id wasd
checkingd datesd Id endedd upd withd ad groceryd cartd ofd expiredd candyd thatd couldd notd bed sold.d
Thisd wasd dued tod thed managerd orderingd whateverd shed feltd liked insteadd ofd actuallyd
checkingd tod seed whatd thed stored wasd outd ofd ord lowd on.d Shed didn'td cared tod dod thed work.d
Thed stored wasd constantlyd outd ofd whatd peopled wanted,d ord thed stored didn'td selld and itemd atd
all,d thend itd hadd and unbelievabled amountd ofd itemsd nowd wouldd buy.d Thisd wasd eitherd dod tod
itd beingd and unpopulard itemd ord becaused thed pricesd wered tood high.Thed ownerd refusedd tod
lowerd prices,d thisd wouldd alsod caused goodsd tod expired andd notd bed abled tod bed sold.d Whend
marketd equilibriumd happensd itd isd whend supplyd andd demandd haved equalized.d whend thisd isd
shownd ond ad graphd thed lined ofd supplyd andd thed lined ofd demandd crossd eachd other.And
exampled ofd ad timed whered supplyd hasntd metd demandd isd thed GPUd marketd ford computers.d
ford quited somed timed thed demandd ofd thesed cardsd hasd beend fard outweighingd thed demand,d
thisd hasd caused thed priced tod shootd wayd upd dued tod thed want/needd ford themd ind newd
computers.d Whatd cand bed doned tod bringd thesed intod equilibriumd wouldd bed tod increased thed
amountd ofd thesed cardsd produced.d thatd beingd saidd thered ared ad numberd ofd factorsd atd workd
causingd thisd issue.d thed lackd ofd labord whered thed cardsd ared beingd made,d thed lackd ofd rawd
materials,d andd thed shippingd ofd thesed cardsd tod thed Unitedd Statesd asd mostd ofd thed cardsd ared
producedd overseas.d Withd alld ofd thesed issuesd thed endd ofd thisd hasd beend ad longd timed
comingd thoughd luckyd ford used thed cardd pricesd haved startedd tod normalized afterd twod years.d
Marketd equilibriumd occursd whend demandd andd supplyd ared equald atd ad particulard price.d
Whend demandd exceedsd supplyd itd isd consideredd ad shortaged andd whend supplyd exceedsd
demandd itd isd consideredd ad surplus.d Ond ad graphd wed wouldd seed thed supplyd curved andd thed
demandd curved intersecting.d Thed pointd atd whichd theyd intersectd isd thed marketd equilibrium.
Oned specificd exampled Id cand thinkd ofd isd thed priced ofd lumber.d Wed wered planningd ond
puttingd ind ad deckd ad coupled ofd yearsd agod andd evend lastd yeard butd thed pricesd ofd lumberd
wered reallyd high.d Thed reasond ford thisd wasd becaused thered wasd ad marketd shortaged dued tod
covid.d Wed evend pricedd outd ad deckd andd itd wasd almostd threed timesd thed amountd itd wouldd
normallyd be.d Productiond ind ad lotd ofd placesd wasd shutd downd dued tod covidd whichd isd whatd
resultedd ind thed shortage.d Ind responsed tod thatd thed priced ofd lumberd skyrocketed.d Thisd
causedd manyd people,d includingd myself,d tod notd purchased lumberd whichd isd thed goald ofd
increasingd prices.d Thisd givesd suppliersd thed opportunityd tod created ad largerd supplyd sod thatd
pricesd mayd decreased andd wed cand reachd thatd equilibriumd again.d Now,d thed priced ofd lumberd
seemsd tod bed mored reasonabled comparedd tod thed pastd coupled ofd years.
Marketd equilibriumd isd thed stated ind whichd thed marketd supplyd andd demandd balanced eachd
other,d asd ad resultd pricesd becomed stable.d Thed wayd tod showd equilibriumd graphicallyd isd tod
showd thed combinedd priced andd quantityd atd whichd thed supplyd andd demandd curvesd intersect.
Ad lotd ofd studentsd ind thed classd ared usingd pandemicd experiencesd tod showd ad timed whend thed
marketd wasd notd ind equilibrium.d Thosed ared thed bestd examples.d Mostd storesd wered eitherd
outd ofd andd allowingd customersd tod purchased limitedd amountsd ofd householdd andd cleaningd
supplies.d Lysol,d handd sanitizer,d toiletd paper,d whered alld ind shortd supply.d Whend youd wered
abled tod purchased thed itemsd ad $4.00d bottled ofd Lysold wasd nowd $6.00d ord $7.00.d Id evend sawd
atd somed storesd asd highd asd $10.00
Marketd equilibriumd occursd whend ad suppliedd productd isd metd withd thed demandd ofd thatd saidd
product.d Ifd eitherd thed supplyd ord demandd isd higherd ord lowerd thand thed otherd youd ared nod
longerd ind equilibrium.d thisd isd shownd graphicallyd byd whered thed supplyd curved andd demandd
curved crossd eachd other.d Thed mostd prolificd exampled ofd whend thed marketd wasd outd ofd
balanced wasd duringd thed heightd ofd thed Covidd -19d pandemic.d Itd effectd ad lotd ofd products.d
Oned beingd handd sanitizer,d thed demandd becamed sod highd thatd thed supplyd becamed sod lowd
whichd causedd pricesd tod god up.d Afterd timed thed suppliersd wered abled tod meetd demandd andd
thend soond afterd becamed ad surplus.d Nowd thatd thingsd haved startedd tod returnd tod pre-
pandemicd demands,d thed supplyd hasd alsod returnedd tod normald givingd usd thed equilibriumd
again.d Inflationd ond somed ofd thesed productsd alsod hadd and impactd ond somed ofd thesed items,d
asd thed demandd startedd tod lowerd thed highd pricesd stayedd thed same.d Thesed pricesd hadd tod
dropd tod thed normald befored equilibriumd couldd bed metd asd well.d Marketd equilibriumd occursd
whend marketd supplyd equalsd marketd demand.d Thed equilibriumd priced ofd ad goodd ord service,d
therefore,d isd itsd priced whend thed supplyd ofd itd equalsd thed demandd ford it.d Howd dod wed showd
equilibriumd graphically?d d Thed stepsd Id wouldd taked wouldd bed tod drawd ad marketd modeld (ad
supplyd curved andd ad demandd curve)d representingd thed situationd befored thed economicd eventd
tookd place.d Then,d determined whetherd thed economicd eventd beingd analyzedd affectsd demandd
ord supply.d Onced youd haved decided whetherd thed effectd ond demandd ord supplyd causesd thed
curved tod increased (shiftd tod thed right)d ord decreased (shiftd tod thed left)d andd tod sketchd thed
newd demandd ord supplyd curved ond thed diagram.d Lastly,d identifyd thed newd equilibriumd priced
andd quantityd andd thend compared thed originald equilibriumd priced andd quantityd tod thed newd
equilibriumd priced andd quantity.d Duringd thed earlyd stagesd ofd thed pandemicd Id rememberd thed
cityd goingd wild.d Thed storesd fromd ad 50d miled radiusd hadd shortagesd ond food,d householdd
items,d medicinesd andd severald otherd itemsd wed alld used frequentlyd ind ourd homes.d Itd tookd
severald monthsd befored thed storesd couldd keepd thed shelvesd stockedd enoughd ford consumersd
tod purchase.d Manyd storesd laterd begind puttingd ad limitd ond thed itemsd youd cand purchased justd
sod theyd couldd continued tod haved supplyd andd demandd untild thed shipment.
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