Equilibrium: where plans match
Equilibrium: where plans match
Demand shows buyers' plans and supply shows sellers' plans. In this example, equilibrium occurs at a price of £2.00 and a quantity of 600, where quantity demanded equals quantity supplied. At a higher price of £2.50, quantity demanded falls (demand contracts) while quantity supplied rises (supply extends). At a lower price of £1.50, quantity demanded rises (demand extends) while quantity supplied falls (supply contracts).
Step-by-step lessons on OCR GCSE Economics 2.4.2 Equilibrium price and quantity. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.