Equilibrium of supply and demand
graph explanation, look at excess supply and excess demand, how increasing demand will lead to an increase in price and an increase in supply will lead to a decrease of the price. This will always converge to the equilibrium point of the graph.
AB
Related Economics A Level answers
All answers ▸Analyse two economic benefits of globalisation. [6]
Why does the Price Mechanism exist and what are the functions of it?
What happens to the Production Possibility Frontier (PPF) when productivity only increases in one good?
Discuss the effects of an introduction of a minimum wage on the labour market.