FIGURE 9 EQUILIBRIUM PRICE AND QUANTITY OF GAMING APPS
imageMarket equilibrium is achieved when quantity demanded and quantity supplied are equal at the market price. In this graph, that equilibrium occurs at point e, at an equilibrium price of $6 and an equilibrium output of 30. If the market price is above equilibrium ($8), a surplus of 20 computer apps will result (b – a), and market forces would drive the price back down to $6. When the market price is too low ($4), a shortage of 20 computer apps will result (d – c), and businesses will raise the offering prices until equilibrium is again restored.