Price

Quantity Demanded

Quantity Supplied

Php 4

135

26

5

104

53

6

81

81

7

68

98

8

53

110

9

39

121 ***What is the equilibrium price and quantity in this market? If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? (3pts)***

***Support your answer with graph.***

The graph above illustrates the **demand curve** (in blue) and the **supply curve** (in red), with the equilibrium point marked in green. The equilibrium occurs at **Php 6** with a quantity of **81 units**, where the quantity demanded equals the quantity supplied.

If the price were set **above the equilibrium price** (e.g., at Php 7), a **surplus** would exist, as the quantity supplied would exceed the quantity demanded, creating downward pressure on prices. This would eventually push the market back toward the equilibrium.

Would you like any further clarification or more details?

Here are some related questions to explore:
1. What is the impact of a price below the equilibrium price?
2. How do supply and demand curves shift when external factors change?
3. What role do price controls (like price ceilings and floors) play in market equilibrium?
4. How can government intervention affect equilibrium?
5. What factors can cause shifts in demand and supply curves?

**Tip:** Surpluses and shortages drive price changes in competitive markets, always pushing prices toward equilibrium.

Price
Quantity Demanded
Quantity Supplied
Php 4 - 135 - 26
Php 5 - 104 - 53
Php 6 - 81 - 81
Php 7 - 68 - 98
Php 8 - 53 - 110
Php 9 - 39 - 121
What is the equilibrium price and quantity in this market? If the actual price in this market were above the equilibrium price, what would drive the market toward the equilibrium? (3pts)
Support your answer with a graph.

Determine the market equilibrium price and quantity using supply and demand data. In this example, the equilibrium is reached at Php 6 with a quantity of 81 units, where the quantity demanded equals the quantity supplied. Explore how prices adjust in competitive markets with surpluses and shortages.

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