Principles of Economics: Microeconomics - The Equilibrium Price and Quantity

In this lesson, we investigate how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. At equilibrium, the price is stable and gains from trade are maximized. When the price is not at equilibrium, a shortage or a surplus occurs. The equilibrium price is the result of competition amongst buyers and sellers. ***TEACHER RESOURCES*** Supply and Demand 5-day HS unit plan: https://mru.io/8ue Assessment questions: https://mru.io/principles-b1be1 Econ In The News, a free weekly email of class-ready news articles: https://learn.mru.org/econ-news/ More high school teacher resources: https://mru.io/high-school-4fa52 More professor resources: https://mru.io/university-teaching-c6b5f ***CONTINUE LEARNING*** Next video—Graphing a Demand Curve from a Demand Schedule, and How to Read a Demand Graph: https://mru.org/courses/principles-economics-microeconomics/graphing-demand-curve-demand-schedule-and-how-read Practice questions: https://mru.io/equilibrium-price-8d047 Full Microeconomics course: https://mru.io/cp1 00:00 Equilibrium Price and Quantity 00:55 Buyers and Sellers 01:21 Surplus Example - Price is Too High 01:54 Shortage Example - Price is Too Low 02:36 Properties of Market Equilibrium