Set quantity demanded equal to quantity supplied to identify the market-clearing price and output, then use curve shifts to determine the new equilibrium position.
Some markets in Belgium are in equilibrium. The country produces a wide range of goods and services with different degrees of price elasticity of demand. The Belgian Government wants the economy to move to a production possibility point beyond its current production possibility curve (PPC). Belgium's scientific industry is one industry which is doing well. Workers in this industry are highly specialised.
Define market equilibrium.
Define market equilibrium.
Demand equalling supply (2).
No shortage (1) no surplus (1).
Balance of demand and supply (2).
2