In this video we explain how to use the demand and supply equations to solve for the equilibrium price and quantity values (often referred to as P* and Q*) in a market, and then calculate the magnitude of a shortage or surplus in the market, depending on whether the actual price is above or below the equilibrium price in the market. This is something which you will need to know how to do throughout your studies in economics, so it's definitely worth reviewing to ensure you understand it.

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