E.2.8



=Demonstrate how changes in supply and demand influence equilibrium price and quantity in the product, resource, and financial market.=

Equilibrium means a **state of equality or a state of balance between market demand and supply**. Changes in the conditions of demand or supply will shift the demand or supply curves. This will cause changes in the equilibrium price and quantity in the market.
 * Without a shift in demand and/or supply there will be no change in market price.
 * In the diagram, the quantity demanded and supplied at price P1 are equal.
 * At any price above P1, supply exceeds demand and at a price below P1, demand exceeds supply.
 * In other words, prices where demand and supply are out of balance are termed points of disequilibrium.





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