The equilibrium PRice

The equilibrium quantity is equal to

Both quantity demanded and quantity supplied at the equilibrium price

In a market, buyers compete with _______, and sellers compete with ____

Other buyers; other sellers

The demand and supply curve show how buyer and sellers ______; the interaction of buyers and sellers _______.

Respond to prices; determins the price

When there is a surplus in a market:

Sellers have an incentive to reduce their prices so they can outcompete other sellers and sell more

the equilibrium price is the only _____ price

Stable

Graphically speaking, the equilibrium price and quantity can be found by locating

The intersection of the supply and demand curve

A surplus will occur in the market for oil if:

The price of oil is above the equilibrium price

The equilibrium price is the price where

The quantity demanded is equal to the quantity supplied

At a price lower than the equilibrium price, there is a ________, and buyers ________.

shortage; demand more than sellers are willing to sell