Mediaspace scheduled maintenance: Aug 25, 2026 07:00 - 12:00 AM. During this time, videos will be temporarily unavailable. Check status updates.

Lecture

Energy Supply Market

Description

This lecture explains market equilibrium in the context of energy supply, illustrating how prices, demand, and supply interact to reach a balance where no excess supply or demand exists, leading to a stable market.

Official source

Related concepts (17)

Economic equilibrium

In economics, economic equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change. For example, in the standard text perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in this case is a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers.

General equilibrium theory

In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium. General equilibrium theory contrasts with the theory of partial equilibrium, which analyzes a specific part of an economy while its other factors are held constant.

Competitive equilibrium

Competitive equilibrium (also called: Walrasian equilibrium) is a concept of economic equilibrium, introduced by Kenneth Arrow and Gérard Debreu in 1951, appropriate for the analysis of commodity markets with flexible prices and many traders, and serving as the benchmark of efficiency in economic analysis. It relies crucially on the assumption of a competitive environment where each trader decides upon a quantity that is so small compared to the total quantity traded in the market that their individual transactions have no influence on the prices.

Market clearing

In economics, market clearing is the process by which, in an economic market, the supply of whatever is traded is equated to the demand so that there is no excess supply or demand, ensuring that there is neither a surplus nor a shortage. The new classical economics assumes that in any given market, assuming that all buyers and sellers have access to information and that there is no "friction" impeding price changes, prices constantly adjust up or down to ensure market clearing.

Free market

In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any other external authority. Proponents of the free market as a normative ideal contrast it with a regulated market, in which a government intervenes in supply and demand by means of various methods such as taxes or regulations.

Related lectures (34)

Market Equilibrium: Concepts and Stability MOOC: Soil and Real Estate Economics II

Explores market equilibrium in land and real estate economics, analyzing price adjustments to balance supply and demand.

Real Estate Market Dynamics

Explores real estate market dynamics, including supply, demand, equilibrium, and market disruptions.

Market Equilibrium: Basics

Explores market equilibrium, price regulation, supply and demand effects, social welfare, and challenges in achieving welfare maximization.

Real Estate Market: Supply and Demand MOOC: Soil and Real Estate Economics II

Explores the real estate market dynamics through supply and demand interactions, price equilibrium, and market stability.

Economic Innovations