Equilibrium Price and Quantity - Explained
What is the Equilibrium Price?
Written by J. Mance Gordon
Updated at April 23rd, 2024
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What is the Equilibrium Price?
Equilibrium price is the common price point where consumer demand (shown in the demand curve) is the same as the quantity produced by producers (producer surplus).
What is Equilibrium Quantity?
The equilibrium quantity is the quantity of goods demanded and supplied at the commonly-agreeable price between producer and consumer.
Related Topics
- Self Interest
- Cost-Benefit Analysis
- Enlightened Self-Interest
- Fisher's Separation Theorem
- Ratchet Effect
- Total Utility (Economics)
- Efficiency Principle
- Expected Utility
- Subjective Theory of Value
- Positional Goods
- Utilitarianism
- Indifference Curve
- Time Preference Theory of Interest
- Incentives
- Marginal Benefit
- Diminishing Marginal Utility
- Sunk Costs
- Production Possibilities Frontier
- Law of Diminishing Returns
- Economic Efficiency
- Efficiency Theory
- Productive Efficiency
- Capacity Utilization Rate
- Allocative Efficiency
- Pareto Efficient
- Comparative Advantage
- Criticisms of the Economic Approach
- Behavioral Economics
- Normative Economics
- Positive Economics
- Invisible Hand
- Sunk cost