How a market reaches equilibrium
Explore the lecture's two examples: price too low → shortage → price rises, and price too high → surplus → price falls. Adjust the price, then animate its movement toward equilibrium.
Supply and demand at the current market price
Horizontal distance at the purple price line = shortage or surplus.
The equilibrium point remains fixed when you change only the current market price. Shift demand or supply to change the equilibrium itself.
Change the market conditions
Use the presets or move the price slider yourself.
What happens at this price?
ShortageEquilibrium target
Equations from the lecture exercise
The baseline equations reproduce the lecture's equilibrium: Q* = 4 and P* = 33. The price-adjustment animation illustrates directional pressure, not a fitted behavioral dynamics model.
Surplus at equilibrium
These are calculated at the equilibrium point, not at a non-equilibrium price selected using the slider. Check the box above to shade the welfare regions.