MODULE 7

Supply and Demand: Equilibrium

In this Module, you will learn to:

• Explain how supply and demand curves determine a market’s equilibrium price and equilibrium quantity

• Describe how price moves the market back to equilibrium in the case of a shortage or surplus

• Explain how equilibrium price and quantity are affected when there is a change in either supply or demand

• Explain how equilibrium price and quantity are affected when there is a simultaneous change in both supply and demand