Chapter Introduction
MODULE 7
Supply and Demand: Equilibrium
69
STR/AFP/Getty Images
7Supply 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