MARKET EQUILIBRIUM
Definition of Market Equilibrium
when quantity demanded, Qd and quantity supplied,Qs are equal and there is no tendency for price or quantity to changeMarket equilibrium price and quantity
Shortage price set up below than equilibrium price. Qd > Qs (excess demand)
Surplus price is set up above than equilibrium price Qs > Qd (excess supply)
Maximum price or Ceiling price the government put price below the equilibrium price. Price is not allow to increase. Shortage occurs.
Minimum / floor price the government put price above the equilibrium price. Price not allow to decrease. Surplus occurs.
