When an exchange occurs, the agreed upon price is called the "equilibrium price", or a "market clearing price". This can be graphically represented as shown above. In the above figure, both buyers and sellers are willing to exchange the quantity "Q" at the price "P". At this point supply and demand are in balance or “equilibrium"...
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At any price below P, the quantity demanded is greater than the quantity supplied. In this situation consumers would be anxious to acquire product the producer is unwilling to supply resulting in a product shortage. In order to ration the shortage consumers would have to pay a higher price in order to get the product they want; while producers would demand a higher price in order to bring more of the product to the market...
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supply and demand On the morning of the U.S. release, retailers across the nation sold out of the product within just a few hours of opening their doors to consumers. In the weeks that followed however, many consumers purchased the unit from sellers on on-line auction sites and even from individuals in parking lots for as much as $1500...	4 / 1006
Economics Basics: Demand And Supply But unlike the law of demand, the supply relationship shows an upward slope. This means	2 / 283
supply and demand The supply will be increases. Equilibrium When supply and demand are equal (i.e. when the supply function and demand function intersect) the economy is said to be at equilibrium...	4 / 890
Suppy And Demand Economic Review. Retrieved on 2007-02-26. Wikipedia.com (March 2007) "Supply and Demand" Retrieved on 2007-03-10.	1 / 267