Demand, Supply and Market Equilibrium

Explore how buyers and sellers interact, why prices change and how markets reach equilibrium.

What you will learn

• Determinants of demand and supply.
• Movements along curves and shifts of curves.
• Market equilibrium, shortages and surpluses.
• Price elasticity and its practical use.

Study focus

Always state the factor that changes before deciding whether the curve shifts or there is a movement along it.

Exam reminder

Label diagrams carefully and explain the resulting change in equilibrium price and quantity.