4 supply and demand together 24 equilibrium

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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 Variables 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 2.4.1The The equilibrium is found where the supply and demand curves The 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...
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