Google
Monday 
September 20, 2021 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
LIABILITY: Something that you owe. The biggest liabilities for most consumers are loans, including mortgages, car loans, credit-card balances, and installment accounts at stores.

Visit the GLOSS*arama


EQUILIBRIUM QUANTITY:

The quantity that exists when a market is in equilibrium. Equilibrium quantity is simultaneously equal to both the quantity demanded and quantity supplied. In a market graph, the equilibrium quantity is found at the intersection of the demand curve and the supply curve. Equilibrium quantity is one of two equilibrium variables. The other is equilibrium price.
Equilibrium quantity is the quantity exchanged when a market is in balance. Because quantity demanded and quantity supplied are equal, there is no shortage nor surplus in the market, which means that neither buyers nor sellers are inclined to change the price or the quantity, which is an essential condition for equilibrium.

The Market

The market model',500,400)">model displayed in the exhibit here can be used to identify the equilibrium quantity. This particular model represents the market for 8-track tapes, which are filled with the works of classic performers such as The Carpenters and Englebert Humperdink. The buyers and sellers happen to be folks attending the 88th Annual Trackmania 8-Track Tape Collectors Convention at the Shady Valley Exposition Center.

Equilibrium Quantity

Before getting to the equilibrium quantity consider the market itself.

  • First, the demand curve (D) is negatively sloped--higher prices correspond with smaller quantities. This negative slope indicates the law of demand.

  • Second, the supply curve (S) is positively sloped--higher prices correspond with large quantities. This positive slope indicates the law of supply.

Clearing the Market

Equilibrium quantity results when the market is in balance, which is equality between quantity demanded and quantity supplied. The market is clear of any shortage or surplus. The only quantity that accomplishes this task is at the intersection of the demand curve and supply curve. This intersection point, and the quantity that results, can be identified by clicking the [Equilibrium Quantity] button in the exhibit.

Doing so reveals that the equilibrium quantity is 400 tapes. At this quantity, the demand curve and supply curve intersect. The quantity demanded is 400 tapes and the quantity supplied is 400 tapes. The quantity demanded is equal to the quantity supplied. The buyers can buy all that they want, so there is no shortage. The sellers can sell all that they want, so there is no surplus. Neither buyers nor sellers are motivated to change the price. The forces of demand and supply are in balance.

This is the ONLY quantity that has a balance between these two quantities. Best of all, because this is equilibrium, the equilibrium quantity of 400 tapes does not change and the equilibrium price of 50 cents does not change unless or until an external force intervenes.

<= EQUILIBRIUM PRICEEQUILIBRIUM, SHORT-RUN AGGREGATE MARKET =>


Recommended Citation:

EQUILIBRIUM QUANTITY, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2021. [Accessed: September 20, 2021].


Check Out These Related Terms...

     | equilibrium price | market equilibrium | equilibrium | market equilibrium, numerical analysis | market equilibrium, graphical analysis | market clearing | disequilibrium price | shortage | surplus |


Or For A Little Background...

     | quantity | quantity demanded | quantity supplied | demand price | supply price | demand curve | supply curve | market | demand | supply | law of demand | law of supply |


And For Further Study...

     | stable equilibrium | unstable equilibrium | market disequilibrium | self correction, market | comparative statics | market demand | market supply | exchange | competitive market | demand determinants | supply determinants | ceteris paribus | market-oriented economy | efficiency |


Search Again?

Back to the WEB*pedia


APLS

RED AGGRESSERINE
[What's This?]

Today, you are likely to spend a great deal of time touring the new suburban shopping complex wanting to buy either a solid oak entertainment center or a remote controlled ceiling fan. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
Your Complete Scope

This isn't me! What am I?

Mark Twain said "I wonder how much it would take to buy soap buble if there was only one in the world."
"No amount of business school training or work experience can teach what is ultimately a matter of personal character. "

-- Truett Cathy, Chick-fil-A Inc. founder

CAP
Common Agricultural Policy
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2021 AmosWEB*LLC
Send comments or questions to: WebMaster