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

EconInbox, a free weekly email of class-ready news articles, videos, and more: https://mru.io/econinbox-3ba48

More high school teacher resources: https://mru.io/high-school-4fa52

More professor resources: https://mru.io/university-teaching-c6b5f

**CONTINUE LEARNING**
Next video—Understanding the Demand Curve: Shifts and Consumer Surplus: https://mru.io/demand-f58d7

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