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This is " The Equilibrium Price and Quantity " from our Principles of Economics: Microeconomics course. In this lesson, we investigate how prices reach equilibrium

This is "The Equilibrium Price and Quantity" from our Principles of Economics: Microeconomics course.

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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