Supply & Demand — Market Equilibrium

Shift supply and demand curves interactively. Explore consumer/producer surplus and the effects of price controls on market efficiency.

Demand intercept (willingness to pay) = 80

Supply base price (min producer cost) = 10

Demand slope (price sensitivity) = 0.70

Supply slope (cost increase rate) = 0.50

Price controls

Equilibrium price P*—

Equilibrium qty Q*—

Consumer surplus—

Producer surplus—

Market equilibrium: price where quantity supplied = quantity demanded.
Consumer surplus = value buyers get above what they pay.
Dead-weight loss appears when price controls prevent efficient trade.