As your text suggests, sellers alone do not set prices and buyers alone do not set prices. It is the interaction of buyers and sellers that sets prices.
- Explain where the market equilibrium occurs.
- How do we show equilibrium graphically?
- Share an example from your own experience when the market was not in equilibrium for a product or service.
- Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium.
Reference:
Asarta, C. J., Butters, R. (2022). Connect master principles of economics. McGraw-Hill.