top of page


Interaction of demand and supply– markets in equilibrium

The equilibrium price (also known as the market-clearing price) is determined where the demand for a product is equal to the supply of the product. This means that there is neither excess quantity demanded nor excess quantity supplied at the equilibrium price

Equilibrium will exist when the plans of consumers (as represented by the market demand curve) match the plans of suppliers (as represented by the market supply curve).

Diagram 1 : Market equilibrium

Diagram 2 : Total consumer expenditure and total revenue

Total consumer expenditure (and therefore total revenue) will be $15,000. ($100 * 150 units)

< Back
Untitled design(5).png

Economics notes  on

Markets in equilibrium

Perfect for A level, GCSEs and O levels!

👑Subscribe to the Economics Study Pack and Download economics notes in PDF and EDITABLE versions!

Economics Study Pack
factors influencing demand.jpg
bottom of page