Unformatted text preview: at
lowers the quantity
that sellers wish to
produce at a given
price shifts the supply
curve to the left.
curve Variables That Influence Sellers
Variable A Change in This Variable… Price Represents a movement along the supply curve Input prices negative Technology positive Expectations negative Number of sellers positive TABLE 2 2.4 SUPPLY AND DEMAND TOGETHER
2.4 Equilibrium Equilibrium price (marketclearing price) a situation in which the price has reached the level where quantity supplied equals quantity demanded
the price that balances quantity supplied and quantity demanded Equilibrium quantity the quantity supplied and the quantity demanded at the equilibrium price 2.4.1The Equilibrium of Supply and Demand
The equilibrium is found where the supply and demand curves
intersect. At the equilibrium price, the quantity supplied equals the
quantity demanded. Here the equilibrium price is $2. At this price, 7
ice-cream cones are supplied, and 7 ice-cream cones are demande...
View Full Document