Study Hall - What is Market Equilibrium?

Poll: Tootsie Rolls are...

• Awesome!

• Meh, just ok, but I still eat them.

• The Worst

Many things in economics revolve around the concept of _____ (budgets, needs vs. resources, supply & demand).

• balance

• monopoly
• production

• cash

Market ​ (a)   is the ​ (b)   where the amount supplied elegantly ​ (c)   the amount demanded by consumers.

• equilibrium
• price
• matches
• surplus
• demand
• exceeds

What is the market-clearing price?

• The price where supply exceeds demand

• A price set by the government

• The price where everything is sold

• A price that consumers refuse to pay

​ (a)   , or overproduction relative to demand, happen when ​ (b)   people want to buy a thing at a given ​ (c)   point than they were before. Generally, they’re held  

in check by the market through the desire for suppliers to waste as little money as possible, known as the ​ (d)   motive. You don’t make any money on stuff you don’t sell.

• fewer
• price
• profit
• Surpluses
• more
• Shortages
• losses

​ (a)   , or too few goods available relative to demand at a given price point, 

don’t last forever either. By raising ​ (b)   , suppliers cut out some demanders who can’t or won’t pay the new amount– and the suppliers get to rake in more ​ (c)   than they would’ve if they’d left their prices the same.

• Shortages
• prices
• money
• Surpluses
• membership
• losses

How did the price of toilet paper change during the early days of the COIVD pandemic in 2020?

• It decreased

• It remained the same

• It increased significantly

• It was removed from stores

Poll: Do you like Sriracha?

• Yes, I love it!

• Meh, I can take it or leave it.

• No, I'm not a fan

• I've never tried it.

  🤔

What does market equilibrium refer to in economic terms?

• The highest price consumers are willing to pay

• A balance between supply and demand

• The lowest price producers can sell their goods

• A fixed price set by the government

How do consumers and producers typically behave in a market economy?

• Consumers try to maximize profit while producers minimize costs

• Producers aim to sell at the highest price while consumers want to save money

• Both consumers and producers always act out of goodwill

• Consumers generally do not influence market prices