16s - 16 2010 W W Norton Company Inc Equilibrium Market...

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© 2010 W. W. Norton & Company, Inc. 16 Equilibrium
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© 2010 W. W. Norton & Company, Inc. 2 Market Equilibrium A market is in equilibrium when total quantity demanded by buyers equals total quantity supplied by sellers.
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© 2010 W. W. Norton & Company, Inc. 3 Market Equilibrium p D(p), S(p) q=D(p) Market demand Market supply q=S(p) p* q* D(p*) = S(p*); the market is in equilibrium.
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