Market Equilibrium

Which answer represents market equilibrium?

• A situation where quantity of demand is bigger than quantity of supply.

• A situation where quantity of demand lower than quantity of supply.

• A situation where quantity of demand and quantity of supply are equal

Market Equilibrium curve

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• 
• 
• 

Qs > Qd

• Equilibrium

• Shortage

• Surplus

Qs < Qd

• Equilibrium

• Shortage

• Surplus

Qs = Qd

• Equilibrium

• Shortage

• Surplus

Equilibrium is at

• Price, RM1. Qd: 10,000 Qs 2,000.

• Price, RM2. Qd: 8,000 Qs 4,000.

• Price, RM3. Qd: 6,000 Qs 6,000.

• Price, RM4. Qd: 4,000 Qs 6,000.

Minimum price

• Floor Price

• Ceiling Price

Maximum price

• Floor Price

• Ceiling Price

Maximum price

• Imposed by the government when the market price of the product/ service is exorbitantly high, beyond income of the most consumers.

  To help : buyer

• Imposed by the government when the market price of the product/ service is exorbitantly high, beyond income of the most consumers.

  To help : seller

• Imposed by the government when the price of certain commodities are extremely low that it adversely effects the income of the producers.

  To help : seller

• Imposed by the government when the price of certain commodities are extremely low that it adversely effects the income of the producers.

  To help : buyer

Minimum price

• Imposed by the government when the market price of the product/ service is exorbitantly high, beyond income of the most consumers.

  To help : buyer

• Imposed by the government when the market price of the product/ service is exorbitantly high, beyond income of the most consumers.

  To help : seller

• Imposed by the government when the price of certain commodities are extremely low that it adversely effects the income of the producers.

  To help : seller

• Imposed by the government when the price of certain commodities are extremely low that it adversely effects the income of the producers.

  To help : buyer