Market equilibrium
What Market equilibrium means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Market equilibrium
Exam boards and our study guides word this term in slightly different ways. Learn the version your board uses.
Check what you remember
Read the wording for your board, then hide it and explain Market equilibrium in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The point where the market demand curve intersects the market supply curve, so the quantity consumers are willing to buy exactly equals the quantity producers are willing to sell.
The point where the original supply and demand curves intersect, giving the initial equilibrium price and quantity.
Topics that use Market equilibrium
- Price determination (Pearson Edexcel A-Level)
Related terms
- Ceteris paribus
- Excess demand
- Excess supply
- Incentives and rationing
- Market dynamics
- Market-clearing price
- Non-price determinants
- Price mechanism
Using Market equilibrium in the exam
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