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Equilibrium in a competitive market

Equilibrium in a competitive market

Two-panel demand and supply diagram showing equilibrium, surplus above equilibrium price, and shortage below equilibrium price In a freely competitive market, many buyers and sellers interact, so no single participant can control price. Output here means the quantity traded in the market, not GDP.

The determination of equilibrium price and output in a freely competitive market Lesson

  1. A Level
  2. /Economics
  3. /The determination of equilibrium price and output in a freely competitive market