Equilibrium Price — Chapter Summary
ICSE · Class 12 · Economics
Summary of Equilibrium Price for ICSE Class 12 Economics. Part of the ICSE Class 12 Economics syllabus. Equilibrium price is the price at which quantity.
Interactive on Super Tutor
Studying Equilibrium Price? Get the full interactive chapter.
Quizzes, flashcards, AI doubt-solver and a step-by-step study plan — built for chapter summary and more.
Free trial, no card needed.
One of 6 illustrations for Equilibrium Price in Super Tutor — alongside flashcards, concept maps and practice questions.
Overview
Equilibrium price is the price at which quantity demanded equals quantity supplied. It is also called market equilibrium price. Marshall explained price determination through the interaction of demand and supply, comparing them to two blades of a pair of scissors. The market of a good has three esse
Key Concepts
Equilibrium price is the price at
Equilibrium price is the price at which consumers are willing to buy the same quantity of a good that producers are willing to sell. At this price, ma
Market equilibrium refers to the state
Market equilibrium refers to the state of the market when demand for a good is equal to its supply. At this point there is no excess demand and no exc
Excess demand occurs when quantity demanded
Excess demand occurs when quantity demanded is greater than quantity supplied. It creates shortage and pushes price upward toward equilibrium.
Excess supply occurs when quantity supplied
Excess supply occurs when quantity supplied is greater than quantity demanded. It creates surplus and pushes price downward toward equilibrium.
An increase in demand raises both
An increase in demand raises both equilibrium price and quantity when supply remains constant. A decrease in demand lowers both equilibrium price and
Learning Objectives
- Understand the meaning of equilibrium price and market equilibrium
- Explain how demand and supply determine price under perfect competition
- Identify the effects of excess demand and excess supply on price
- Study how shifts in demand and supply change equilibrium price and quantity
- Differentiate between special cases of equilibrium
Frequently Asked Questions
What are the important topics in Equilibrium Price for ICSE Class 12 Economics?
How should I revise Equilibrium Price for the ICSE Class 12 board exam?
Sources & Official References
Content is aligned to the official syllabus. Refer to the board website for the latest curriculum.
More resources for Equilibrium Price
For serious students
Get the full Equilibrium Price chapter — start free.
Quizzes, flashcards, an AI doubt solver and a study plan for ICSE Class 12 Economics. Free to start, no card needed.