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Charlotte Coleman
LVIE



Economics ­ Notes on Chapter 5

Bringing demand and supply together in a Competitive Market



Goods Markets and Factor Markets

Both market and mixed economies contain a large number of markets and they can be
grouped under two headings; goods markets (market for outputs or final goods…

Page 2

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Charlotte Coleman
LVIE



When there is excess supply producers often lower price to move the line towards the
equilibrium and vice versa. Markets try to rearrange themselves to reach equilibrium at
all times.

A shift in supply can disturb market equilibrium. For example, a shift to the left would
cause…

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