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Chapter 3 Prices and Equilibrium

Chapter 3 Prices and Equilibrium

Author: Matthew Lonn
Description:

Students will use the concepts of demand and supply to understand how free market prices and quantities are established. They will then predict what factors will influence a particular market and in what way.

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Tutorial

Prices and Equilibrium

Prices

Use the following notes and video clips to help explain how prices are set in a free market. Use slides #38-45 of the notes.

Questions you should be able to answer after the lesson.

1. Define equilibrium.

2. Draw market equilibrium and show how shifting demand and supply curves will affect prices and quantity in a particular market.

3. Identify on a market graph at what price a surplus and shortage would exist.

Chapter 3 Notes

Explanation of Equilibrium

Equilibrium in 60 seconds

Source: You Tube