Unit 2.3 · Competitive Market Equilibrium
Market Equilibrium
AO4Diagram required
Syllabus Requirement
How the demand and supply curves interact to establish the market equilibrium price and quantity.
Assessment Objectives
AO4Use of Appropriate Skills
Summary
Market equilibrium occurs when the quantity demanded of a product equals the quantity supplied, resulting in no shortages or surpluses. This balance is represented by the equilibrium price and quantity, which are determined at the intersection of the demand and supply curves.