Hi class,

Market equilibrium is the point where the quantity of a product or service supplied equals the quantity demanded. Often times at this point prices and quantity are set by the need for supply and demand, without sudden surpluses or shortages. However, the market equilibrium happens when supply and demand. At this point, the price and quantity are established based on what consumers pay and the willingness of producers to supply. We show equilibrium where the supply and demand curves intersect.

An example I have would be airline prices during the pandemic. My wife and I love to travel and at the time the pandemic happened, we were in the middle of planning a trip to Las Vegas. At the time Las Vegas resorts were struggling in a sense since they didn't have a large amount of customers during the pandemic. Because of this airline and hotel packages to two of my favorite hotels went from being $1,200+ per person to $300 per person because Vegas needed the cash flow. While on a few trips to Vegas, my wife and I met a hotel staff member who expressed that some of the hotels were concerned that the Las Vegas Strip wouldn't survive the pandemic because it's such a huge tourist attraction. The number of tourists declined drastically within a year's time. Now that the pandemic is over the rate of tourism in Vegas has inclined so much so that those same hotels we've stayed at prices are almost at $1,000 per person now.

How would you respond to Jazmins post?