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Market Equilibrium

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Mr Ponting

Updated 4 months ago

1. Slide
60 seconds
"Market Equilibrium"
Market equilibrium is a condition or a point where the market forces of supply and demand are balanced
2. Word cloud
120 seconds
In what way does a change in supply and demand affect market equilibrium?
3. Slide
60 seconds
Market equilibrium is the point at which the quantity of goods supplied by sellers is equal to the quantity of goods demanded by buyers. Changes in supply and demand can cause the market equilibrium to shift, resulting in higher or lower prices. When there is an increase in demand, prices increase to match the increased demand. When supply increases, prices decrease to match the increased supply.
Market Equilibrium and Changes in Supply and Demand
4. Slide
60 seconds
Market Equilibrium: A balance between supply and demand in a market, where the quantity supplied equals the quantity demanded. Changes in Supply: A change in the amount of a product that producers are willing and able to make available. Changes in Demand: A change in the amount of a product that consumers are willing and able to buy.
Concepts:
5. Slide
60 seconds
When the demand for a good increases and the supply remains the same, the market equilibrium price rises. In a perfectly competitive market, the equilibrium price is determined by the intersection of the demand and supply curves. A change in demand or supply does not always lead to a change in equilibrium price. It depends on the relative magnitude of the change.
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6. Personalised Feedback
360 seconds
How do changes in supply and demand impact market equilibrium?
7. Open question
180 seconds
Work together in pairs: What are the possible effects on market equilibrium when there is a change in either supply or demand?
8. Drawings
450 seconds
Brain break: Draw a dinosaur wearing a top hat juggling five marshmallows
9. Poll
60 seconds
What is market equilibrium?
  • The point where there is a shortage of goods
  • The point where the quantity demanded equals the quantity supplied
  • The point where the price is highest in the market
10. Poll
60 seconds
What happens to market equilibrium when there is an increase in demand?
  • Price and quantity decrease
  • Price and quantity increase
  • Price decreases and quantity increases
11. Poll
60 seconds
What happens to market equilibrium when there is a decrease in supply?
  • Price decreases and quantity increases
  • Price increases and quantity decreases
  • Price remains unchanged but quantity decreases
12. Poll
60 seconds
If both supply and demand increase, what will happen to market equilibrium?
  • Quantity will definitely decrease, but price may either increase or decrease.
  • Both price and quantity will definitely decrease.
  • Quantity will definitely increase, but price may either increase or decrease.
13. Poll
60 seconds
How does a change in consumer preferences affect market equilibrium?
  • It can shift both demand curve or supply curve leading to changes in price or/and quantities.
  • It doesn't have any effect on market equilibrium.
  • It only affects prices as consumers pay more for preferred goods.
14. Slide
60 seconds
1. Increase in the price of raw materials (coffee beans) - Shift in Supply:
Imagine a country like Brazil, a major producer of coffee, is hit by a severe drought. This decreases the availability of coffee beans, which in turn causes the cost of raw materials (coffee beans) to increase for coffee companies worldwide. Because it's now more expensive to produce coffee, these companies would reduce the quantity of coffee they supply at each possible price. This represents a leftward shift in the supply curve, which leads to a new market equilibrium with a higher price and lower quantity of coffee.
15. Slide
60 seconds
Introduction of a new popular diet - Shift in Demand:
Let's say a new diet gains popularity globally, which encourages high protein intake and low carbohydrate consumption. As a result, the demand for protein-rich foods like chicken, eggs, and tofu would increase. More people would want to buy these foods at any given price, causing a rightward shift in the demand curve. The new market equilibrium would have a higher price and higher quantity for these protein-rich foods.
16. Slide
60 seconds
Government policy change - Shifts in Supply and Demand:
If the government increases taxes on cigarettes, this makes it more expensive for companies to produce cigarettes (a decrease in supply), and it also makes cigarettes more expensive for consumers (a decrease in demand). Both the supply and demand curves would shift to the left, and the new market equilibrium would depend on the relative magnitudes of these shifts. However, it would likely result in a lower quantity of cigarettes and potentially a higher or lower price depending on which shift is more significant.
17. Poll
60 seconds
a highly influential celebrity endorses a specific brand of sneakers
  • Shift in Supply
  • Shift in Demand
18. Poll
60 seconds
a major breakthrough occurs in renewable energy technology, making it cheaper and more efficient to produce solar panels
  • Shift in Supply
  • Shift in Demand
19. Poll
60 seconds
Introduction of an efficient new machinery in a car manufacturing company.
  • Shift in Supply
  • Shift in Demand
20. Poll
60 seconds
A destructive earthquake disrupts the production of grapes in a major wine-producing region.
  • Shift in Supply
  • Shift in Demand
21. Poll
60 seconds
A medical report links consumption of a popular soft drink to health problems.
  • Shift in Supply
  • Shift in Demand
22. Poll
60 seconds
Government subsidies are given to farmers growing organic produce.
  • Shift in Supply
  • Shift in Demand
23. Poll
60 seconds
Increased consumer concern about the environmental impact of single-use plastic bottles.
  • Shift in Supply
  • Shift in Demand

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