Determination of Price in
competitive markets (1)
TO UNDERSTAND HOW THE
INTERRELATIONSHIP BETWEEN MARKET
FORCES DETERMINES EQUILIBRIUM PRICE.
EXPLAIN THE IMPACT OF COMPETITION ON
PRICE.
Equlilbrium
 Key Term: Equilibrium price
 If the factors that determine demand and supply
changes and the curves shift it will change the
equilibrium.
 Going over both diagrams it will require a change in
price, increase or decrease, in order for the new
equilibrium to be found.
 HW – Use Tutor2u to research this concept.