Economic equilibrium

High school (ages 12+)
Mathematics & Numbers

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Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/economic-equilibrium

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the equilibrium condition?Quantity Demanded = Quantity Supplied
2. What is the market clearing price?The price at which equilibrium is achieved
3. Why do prices go down when there are too many goods?When sellers have more goods than buyers want, they lower prices to try to sell them. This helps bring the market back to balance.
4. Why do prices go up when there aren't enough goods?If there are fewer goods than people want, sellers can raise prices because buyers are willing to pay more. This encourages more people to sell or make more goods.

Supply: The total quantity of a good or service that producers are willing and able to offer for sale at various prices.
Demand: The quantity of a good or service that consumers are willing and able to purchase at various prices.
Market Clearing Price: The price at which the quantity supplied equals the quantity demanded, resulting in no surplus or shortage.
Surplus: A situation where the quantity supplied exceeds the quantity demanded, typically leading to price decreases.