Notes Class XII Economics (Introductory Microeconomics) Chapter 5 Market Equilibrium

Class 12 Economics (Introductory Microeconomics) Chapter 5: Market Equilibrium explores how the forces of demand and supply interact to determine the equilibrium price and quantity in a perfectly competitive market. The chapter explains the concepts of excess demand, excess supply, and how market forces automatically adjust to restore equilibrium. It also introduces the impact of shifts in demand and supply on equilibrium and discusses the role of government interventions such as price ceilings and price floors. With the help of diagrams and real-life examples, students learn how markets function efficiently and what causes market distortions. These notes are designed to offer clarity on both graphical and theoretical aspects of market equilibrium. Aligned with the CBSE 2025–26 syllabus, they are ideal for concept-building, revision, and scoring well in board exams.