As your text suggests, sellers alone do not set prices and buyers alone do not set prices. It is the interaction of buyers and sellers that sets prices.

• Explain where the market equilibrium occurs.
• How do we show equilibrium graphically?
• Share an example from your own experience when the market was not in equilibrium for a product or service.
• Explain why the market was out of equilibrium (what caused it to be out of equilibrium) and what needed to be done to bring the market back to equilibrium.