Note: This is the seventh post in a weekly video series on basic microeconomics.
In previous videos in this series from Marginal Revolution University we learned how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. In the next couple of videos you’ll see why the equilibrium price (he market price where the quantity of goods supplied is equal to the quantity of goods demanded) is the only stable price and whether this model works in the real world.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
Previous in series: How to read a supply curve