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EQUILIBRIA in PRODUCTION ECONOMIES 1 Introduction This Emlab Berkeley Form

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♪ [music] ♪ - [Narrator] We know from previous lessons that the demand curve and the supply curve show how buyers and sellers respectively respond to changes in the price of a good. In this lesson, we'll show you how the interactions of buyers and sellers determine the price. Let's start with the punch line. The equilibrium price is the price where the quantity demanded is equal to the quantity supplied, right here, and this is the equilibrium quantity. Why is this the equilibrium price? At any other price, forces are put into play that will push the price towards the equilibrium price. It's kind of like a ball in a bowl, where the ball always returns to one stable position. The equilibrium price is the only place where the price is stable. To see why, the first thing to understand is that buyers don't compete against sellers. Buyers compete against other buyers. A buyer obtains goods by bidding higher than other buyers. And sellers compete against o

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EQUILIBRIA in PRODUCTION ECONOMIES 1 Introduction This Emlab Berkeley Form

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How to create an eSignature for the equilibria in production economies 1 introduction this emlab berkeley

How to create an electronic signature for a PDF online

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How to create an e-signature right from your smartphone

How to create an e-signature for a PDF on iOS

How to create an e-signature for a PDF on Android

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