Market Equilibrium and Disequilibrium in Supply and Demand Analysis

Mr. Breen explains market equilibrium and disequilibrium by combining supply and demand on a graph. He illustrates how different prices affect quantity demanded and supplied, leading to surplus or shortage. The equilibrium price is where quantity demanded equals quantity supplied, clearing the market. Prices above or below this lead to disequilibrium, causing surplus or shortage.

What is the primary focus of the video by Mr. Breen?

• The law of gravity

• Advanced calculus

• The history of economics

• Market equilibrium and disequilibrium

What happens when the quantity supplied is greater than the quantity demanded?

• Prices decrease

• The market is in equilibrium

• A surplus occurs

• A shortage occurs

In the context of the video, what does a surplus indicate?

• The market is balanced

• Prices are too low

• Supply exceeds demand

• Demand exceeds supply

What is the result when the quantity demanded is higher than the quantity supplied?

• A surplus

• A shortage

• Equilibrium

• Price stability

What term is used to describe the situation where demand exceeds supply?

• Market clearing

• Surplus

• Equilibrium

• Shortage

What is the equilibrium price?

• The price where supply exceeds demand

• The price where demand exceeds supply

• The price that causes a surplus

• The price where quantity demanded equals quantity supplied

What does the equilibrium price ensure in the market?

• There is always a surplus

• There is always a shortage

• There is no surplus or shortage

• Prices are always high

What is disequilibrium in the context of market prices?

• When demand is constant

• When prices are stable

• When prices cause either a surplus or a shortage

• When supply equals demand

What happens when the market price is not the equilibrium price?

• The market clears

• There is no effect

• It leads to either a surplus or a shortage

• Demand and supply are equal

What is the market clearing price?

• A price that causes a surplus

• A price that causes a shortage

• A price where everything produced is purchased

• A price that is always high