Section 3
Market Equilibrium
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Version 3
By Boundless
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Boundless Economics
Economics
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3 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/20065/square/price-of-market-balance.gif)
Clearing the Market at Equilibrium Price and Quantity
When a market achieves perfect equilibrium there is no excess supply or demand, which theoretically results in a market clearing.
![Thumbnail](../../../../../../figures.boundless-cdn.com/19995/square/effect-of-a-price-floor.gif)
Impacts of Surpluses and Shortages on Market Equilibrium
The existence of surpluses or shortages in supply will result in disequilibrium, or a lack of balance between supply and demand levels.
![Thumbnail](../../../../../../figures.boundless-cdn.com/19955/raw/-demand-right-shift-demand.jpg)
Changes in Demand and Supply and Impacts on Equilibrium
Alterations to overall supply or demand dictate the cross-section or equilibrium, ascertaining price and volume for a product or service.