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Equilibrium Price

from class:

AP Microeconomics

Definition

The equilibrium price is the price at which the quantity demanded of a good or service equals the quantity supplied, resulting in market stability.

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"Equilibrium Price" also found in:

Subjects (18)

Practice Questions (10)

If the demand curve for a product shifts to the right while the supply curve remains unchanged, what is likely to happen to the equilibrium price and quantity?
If the government imposes a price ceiling below the equilibrium price in a market, what is likely to occur?
What happens when the price of a good is set above the equilibrium price in a market?
What happens to the equilibrium price and quantity when there is an increase in demand?
What happens to the equilibrium price and quantity when there is a decrease in demand?
What happens to the equilibrium price and quantity when there is a decrease in supply?
A natural disaster destroys a significant portion of agricultural crops. What is the likely impact on the equilibrium price and quantity of the affected crops?
A new government regulation imposes a tax on the production of a certain good. What is the likely impact on the equilibrium price and quantity?
What happens to the market when a price ceiling is set below the equilibrium price?
What happens to the market when a price floor is set below the equilibrium price?

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