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The Equilibrium Price and Quantity
4:50
YouTubeMarginal Revolution University
The Equilibrium Price and Quantity
In this lesson, we investigate how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. At equilibrium, the price is stable and gains from trade are maximized. When the price is not at equilibrium, a shortage or a surplus occurs. The equilibrium price is the result of competition amongst ...
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