The Equilibrium Price

In this lesson, we investigate how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. At equilibrium, the

In this lesson, we investigate how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. At equilibrium, the price is stable and gains from trade are maximized. When the price is not at equilibrium, a shortage or a surplus occurs. The equilibrium price is the result of competition amongst buyers and sellers.

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Sorry. I do not see the mistakes . Please shıow me . Thanks billion

If the price is higher than the equilibrium price, demand has to go down all things being equal.

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Ah that will be the subject of a later video I am sure but that is good you thought of this.

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Adam Smith uses the metaphor "invisible hand" in Book IV, Chapter II, paragraph IX of The Wealth of Nations.

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Hi Joseph,
We do not offer individual homework help. Best of luck in your course.
Cheers,
Meg

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