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Demo - Market Equilibrium

Demo
by

Nikko Manibo

on 6 February 2017

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Transcript of Demo - Market Equilibrium

MARKET EQUILIBRIUM
DEMAND
CURVE
SUPPLY
CURVE
LOW PRICE
HIGH DEMAND
HIGH PRICE
HIGH SUPPLY
MARKET
EQUILIBRIUM
SURPLUS
SHORTAGE
COMPETENCE
CONSCIENCE
CONSCIENCE
COMPETENCE
COMPETENCE
CONSCIENCE
MARKET


Instruction
: Write True if the statement is correct and False if
it is incorrect.
1. A price higher than the equilibrium price results to shortage.
2. A price lower than the equilibrium price results to surplus.
3. Market equilibrium is a result of agreement between the
buyer and seller.
4. Equilibrium price also refers to the market price.
5. Market is shaped by the forces of demand and supply.

Equilibrium
SUPPLY
DEMAND
It is a state in which the forces of supply and demand interact to determine equilibrium quantity and equilibrium price.

Compute the Qd and Qs and price based on the demand and supply function:
QD = 600 - 5P; QS = -200 +15P
Qd
Price
Qs
_____
_____
_____
350
_____
20
_____
40
_____
_____
_____
250
_____
_____
700
SOURCE:
Mankiw, N. G. (2008). Principles of macroeconomics. Toronto: Thomson Nelson.
THE PRICE

is right
Fe + CO
2
source: n.a. retrived from www.study.com
What are the manifestations that there is a surplus in the market?
Retrieved from www.sphilippines.com
Retrieved from www.thesmstore.com
Chocolate Crisis
Predicting
Price Changes
INCREASE IN DEMAND
DECREASE IN DEMAND
INCREASE IN DEMAND
INCREASE IN SUPPLY
DECREASE IN SUPPLY
INCREASE IN BOTH D and S
DECREASE IN BOTH D and S
INCREASE IN DEMAND
DECREASE IN SUPPLY
DECREASE IN DEMAND
INCREASE IN SUPPLY
% increase in D > %increase in S - P goes up

% increase in S > %increase in D - P goes down

% increase in D = %increase in S - P is same
% decrease in D > %decrease in S - P goes down

% decrease in S > %decrease in D - P goes up

% decrease in D = %decrease in S - P is same
Compute the Qd and Qs and price based on the demand and supply function:
QD = 140 - 3P; QS = -100 +7P
Qd
Price
Qs
92
_____
65
50
_____
16
18
_____
_____
34
_____
_____
_____
100
700
QD = 80 - 3P

QS = -100 + 6
GROUP
Problem Solving
1.
MAYBELLINE
PHP 300
LOUBOUTIN
PHP 4,500
KYLIE LIP KIT
PHP 2,500
CHANEL
PHP 3,000
WHAT DETERMINES THE PRICE?
Find out the market equilibrium price and equilibirum quantity given the supply and demand functions:
QD = 600 - 5P
QS = -200 + 15P
Full transcript