Back to Basic Economic Concepts

Lesson PreviewLesson 6 of 6 in this unit

1.6 Market Equilibrium, Disequilibrium, and Changes in Equilibrium

Part of Basic Economic Concepts in AP® Macroeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

Market Equilibrium

Market equilibrium occurs when the quantity of a good or service that consumers are willing to buy (demand) matches the quantity that producers are willing to sell (supply) at a specific price. This point is known as the equilibrium price and equilibrium quantity. At this price, the amount of the good demanded by consumers equals the amount supplied by producers, meaning there is neither excess supply nor excess demand in the market.

Continue the full lesson in Stellar

Create a free account to unlock the remaining sections, checkpoints, course practice, and progress tracking for AP® Macroeconomics.