How does a market arrive at equilibrium? Consider the market depicted to the right. Suppose the market price is initially PA. At this price, the desired quantity demanded is QD and the desired quantity supplied is QS. Notice that QS is far greater than QD; firms are willing to sell much more than consumers wish to buy at PA. If producers actually offer QS for sale, a great deal of their product will pile up in inventory or on store shelves. The only way to get rid of this surplus inventory, is for the price to fall.

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