Lesson: The Point of Equilibrium

Lesson:  The Point of Equilibrium - The forces of demand and supply gravitate to a balance known as the Point of Equilibrium.  The equilibrium price is the price that balances the amount of a good or service demanded with the amount supplied.  This is a meeting point which allows buyers and sellers to agree on the amounts of a product they want to buy and sell.  It is the price of a good that regulates the quantities demanded
and supplied.  At lower prices, consumers want to buy more of something and producers
want to supply less. 
     For your Equilibrium lesson, draw where the Point of Equilibrium rests and show all
pertinent axes, labels, and data.  For your graph, draw intervals of 2 for the Quantity or x-axis up to 10, and space the y-axis with .50 increments up to $3.00.

                    Quantity             Quantity           Shortage (-)
Price           demanded            supplied           or Surplus (+)

  .50                    9                         0                        -9
1.00                    6                         3                        -3
1.50                   4                          4                         0
2.00                   3                          5                       +2
2.50                   2                          6                       +4

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