When supply and demand are equal (i.e. when the supply function and demand function intersect) the economy is said to be at equilibrium. At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded. Thus, everyone (individuals, firms, or countries) is satisfied with the current economic condition. At the given price, suppliers are selling all the goods that they have produced and consumers are getting all the goods that they are demanding.
Directions: First repeat after your tutor and then read aloud by yourself.
Directions: Read the questions aloud and answer them.
課題: 質問を声に出して読んだ後、答えてみましょう。
1. What happens when the supply and demand intersect?
2. Who will be satisfied when equilibrium is reached?
3. What happens when you have too much supply or not enough?
4. Give an example of how supply and demand works.