Economics, 3rd Edition

equilibrium or market price

, and the quantity is called the 

equilibrium quantity

. In 

Figure 3.7 the equilibrium price is 

€0.40 per litre, and the equilibrium quantity is 7,000 litres of milk bought  

and sold.

Summary 

The supply curve shows what happens to the quantity supplied of a good when its price varies, 

holding constant all the other variables that influence sellers. When one of the other variables changes, 

the supply curve shifts. Table 3.2 lists all the variables that influence how much producers choose to sell 

of a good.

---

CHAPTER 3  THE MARKET FORCES OF SUPPLY AND DEMAND  57