Class 36 The market equilibrium

Today, Mr Rizzo introduces us the idea of market equilibrium and the practical properties of it. It would be inefficient for the seller to enter the market because the cost is higher than how much people value it. If the cost is low (which means the price is higher than how much people value it), the market becomes efficient because it encourage the buyers to buy more and the seller to sell more. Besides, Mr Rizzo emphasizes that the interruption of government in the process of market equilibrium would be disastrous because it disrupts the normal process of market to reach equilibrium.