A Primer on Macroeconomics

Modeling the Market

We can now examine how participants interact in a market. Table 2-3 and Figure 2-7 combine the previous demand and supply schedules.

Table 2-3. Adjustment to Equilibrium

Price	Quantity demanded	Quantity supplied	Result	Price Pressure
60¢	300	700	Surplus	Downward
50¢	450	650	Surplus	Downward
40¢	550	550	Equilibrium	None
30¢	650	450	Shortage	Upward
20¢	800	300	Shortage	Upward
10¢	1000	200	Shortage	Upward

Figure 2-7. Adjustment to equilibrium.

When the price is 60¢ per apple, quantity supplied exceeds quantity demanded and ...