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TER 3:
MARK
ET
EQUIL
IBRIU
M
Price
(RM)
Quantity
demande
d
(units)
Quantity
supplied
(units)
5
4
3
2
4
6
10
8
6
2
1
8
10
Market conditions
( Surplus (+) or Shortage (-) )
10 2 = 8
84=4
66=0
Surplus
Surplus
Equilibrium
Falls
Falls
Equilibrium
4
4 8 =-4
Shortage
Rises
2
2 10 = -8
Shortage
Rises
Quantity of Pilot pens and equilibrium price
(METHOD 1)
SURPLUS
Price
5-
4-
X SS
321-
Market
prices
X
X
SHORTAGE
0-
DD
Quantity
2
10
(1)
(2)
Qd = Qs
a bP = c+dP
MICROECONOMICS
3: MARKET EQUILIBRIUM
Qd
36 4P
Qs
15 + 3P
CHAPTER
Qd = 36 4P
36 4(3)
15 + 3(3)
36 12
15 + 9
Qs = 15 + 3P
units
=24 units
Qd = Qs
Price
=24
(3)
36 4P = 15 + 3P
D S
Qd = Qs
36 4P = 15 + 3P
36 15 = 3P + 4P
21 = 7P
21
7
Quantity
24
3=P
RM 3
SHORTAGE EXIST
SURPLUS EXIST
CHANGE IN
DEMAND
MICROECONOMICS
3: MARKET EQUILIBRIUM
CHAPTER
Price
S
P2
P*
P2
D1D1
DD
D2D2
Q2
Q*
Quantity
Q2
CHANGE IN
SUPPLY
Price
S2S2
DD SS
P2
S1S1
P*
P2
Quantity
Q2
MICROECONOMICS
3: MARKET EQUILIBRIUM
Q*
Q2
CHAPTER
EFFECT
OF
CHANGE D1D1
IN
S1S1
A
DEMAND
E1
AND
SUPPLY
Price
SS
DD
E
EP = (=)
EQ =
Quantity
10
12
Price
DD
S1S1
D1D1
5
SS
EP = (=)
E1
EQ =
Quantity
8
10
MICROECONOMICS
3: MARKET EQUILIBRIUM
CHAPTER
Price
D1D1
SS
DD
S1S1
6
E1
EP =
EQ =
Quantity
10
15
Price
D1D1
DD
E1
SS
EP =
S1S1
Small amount
EQ =
Large amount
Quantity
10
15
MICROECONOMICS
3: MARKET EQUILIBRIUM
CHAPTER
Price
DD
D1D1
SS
E1
S1S1
EP =
E
EQ =
Small amount
Large amount
Quantity
7
10
Price
DD
D1D1
SS
S1S1
EP =
Small amount
EQ =
Large amount
Quantity
7
10
MICROECONOMICS
3: MARKET EQUILIBRIUM
CHAPTER