Market equilibrium
What Market equilibrium means in Economics A-Level, as defined for AQA.
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: AQA
The point where the quantity demanded by consumers equals the quantity supplied by producers, so there is no excess demand or excess supply.
The point where the downward-sloping market demand curve and the upward-sloping market supply curve intersect, determining the market wage.
The point where quantity demanded equals quantity supplied, shown on demand and supply diagrams.
Topics that use Market equilibrium
- The determination of equilibrium market prices (AQA A-Level)
- The determination of relative wage rates and levels of employment in perfectly competitive labour markets (AQA A-Level)
Related terms
- Ceteris paribus
- Disequilibrium
- Economic shocks
- Equilibrium
- Excess demand
- Excess supply
- Imperfect information
- Incentive function
Using Market equilibrium in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
Practise Economics questions
Create a free account to answer exam-style questions on this topic and get feedback on your answers.
A week of Premium from your first lesson · Then the free plan continues · No card, no charge