Answered: How does the market equilibrium define…

How does the market equilibrium define what suppliers will stay in the market and what will leave the market? Explain based on the concept of producer surplus

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter3: Supply And Demand: Theory

Section3.2: Supply

Problem 2ST

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Question

How does the market equilibrium define what suppliers will stay in the market and what will leave the market? Explain based on the concept of producer surplus

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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