Learning objectives
Define market equilibrium and find the equilibrium price and quantity from demand and supply schedules and from a demand and supply diagram
Define market disequilibrium and identify a shortage, where demand exceeds supply, or a surplus, where supply exceeds demand, from schedules and from a diagram
Explain how a shortage or a surplus pushes the price back towards its equilibrium level
Analyse, with a diagram, how an increase or a decrease in demand or in supply changes the equilibrium price and the quantity sold
Apply demand and supply analysis to explain a price change in a real market and its effect on sales
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