1. Unit 5. Equilibrium Price, Grade 10, Economics
Grade 10, Economics, Unit 5 Equilibrium.

2. Grade 10, Economics, Unit 5 Equilibrium.
Demand:
Effective demand,
The willingness and ability to buy a product.
Demand and price are inversely related.
- Demand will rise as price falls.
- Demand will fall as price increases.
Grade 10, Economics, Unit 5 Equilibrium.

3. Individual and Market Demand:
Study individual.
Study market.
Individual demand:
The amount of product an individual would be willing and able to buy, at different prices.
Market demand:
The total demand for a product at different prices. It is found by adding up each individual’s demand at different prices.
Grade 10, Economics, Unit 5 Equilibrium.

4. Grade 10, Economics, Unit 5 Equilibrium.
A Demand Schedule:
Lists the different quantities demanded of a product, at different prices over a particular time period.
Grade 10, Economics, Unit 5 Equilibrium.

5. Grade 10, Economics, Unit 5 Equilibrium.
A Demand Schedule: Daily Demand for Train Tickets from Oxford to London in The Winter Months. (Fig 1.)
Price (Pound sterling)
Quantity demanded 50
2200 45
2500 40
3000 35
3800 30
5000 25
7000
Grade 10, Economics, Unit 5 Equilibrium.

6. Grade 10, Economics, Unit 5 Equilibrium.
Activity 1.
Using the following demand schedule, plot the demand curve for rooms in a hotel in Delhi.
Price (Rupees) Number of rooms
Grade 10, Economics, Unit 5 Equilibrium.

7. The Effect of a Change in Price on Demand.
Fig 4.
Fig 5.
An extension in demand:
A rise in the quantity demanded caused by a
fall in the price of the product itself.
A contraction in demand:
A fall in the quantity demanded caused by a rise in the price of the product itself.
Grade 10, Economics, Unit 5 Equilibrium.

8. Grade 10, Economics, Unit 5 Equilibrium.
Supply:
The willingness and ability to sell a product.
A rise in price will lead to a rise in supply.
A decrease in price will lead to a decrease in supply.
Grade 10, Economics, Unit 5 Equilibrium.

9. Individual and Market Supply
Individual supply:
The supply of one plant/firm.
Market supply:
The total supply of a product produced by all the firms in the industry.
Grade 10, Economics, Unit 5 Equilibrium.

10. Grade 10, Economics, Unit 5 Equilibrium.
A Supply Schedule: Daily Supply of Train Tickets from Oxford to London in Winter Months
Price (Pound sterling)
Quantity supplied 50
6000 45
5000 40
4300 35
3800 30
3600 25
3500
Grade 10, Economics, Unit 5 Equilibrium.

11. Grade 10, Economics, Unit 5 Equilibrium.
Supply
Fig 6.
Fig 7.
Grade 10, Economics, Unit 5 Equilibrium.

12. Grade 10, Economics, Unit 5 Equilibrium.
Price Determination:
Equilibrium price:
- The price where demand and supply are
equal.
- Market clearing price.
Grade 10, Economics, Unit 5 Equilibrium.

13. Grade 10, Economics, Unit 5 Equilibrium.
The Daily Demand for and Supply of Train Tickets from Oxford to London in Winter Months.
Price
Quantity demanded
Quantity supplied 50
2200
6000 45
2500
5000 40
3000
4300 35
3800 30
3600 25
7000
3500
Grade 10, Economics, Unit 5 Equilibrium.

14. Grade 10, Economics, Unit 5 Equilibrium.
Fig 8.
Fig 9.
Fig 10.
Fig 11.
Grade 10, Economics, Unit 5 Equilibrium.

15. Grade 10, Economics, Unit 5 Equilibrium.
Activity:
As the 2006 World Cup approached, sales of Brazilian
football shirts increased not only in Brazil but also in a
number of other countries. Two weeks before the
compensation started, shops in London and Sao Paulo
reported that demand for shirts was outstripping supply.
On a demand and supply diagram, illustrate the market for Brazilian football shirts in Sao Paulo two weeks before the 2006 World Cup.
What would you have expected to happen to the price of Brazilian football shirts in Sao Paulo in this situation? Explain your answer.
Grade 10, Economics, Unit 5 Equilibrium.