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...Law of market equilibrium a free if out tends toward one in which prices and quantities are set by bargaining between fully informed buyers sellers the good being traded not legal restrictions or actors with power note assumptions full information on both sides transaction quality goods offered other no would occur there were only seller monopolist buyer monopsonist addition for to be socially optimal should externalities positive scientific research negative pollution affect parties who part equality quantity supplied demanded state neither show any tendency change second definition is preferable since clearing does always example hotel owners usually have some acceptable vacancy rate job seekers will wait while they search fitting their talents interests numerical values price above graph later graphs purely sake illustration demonstration assume actual slope demand curve mean that less than supply greater hence quanitity this imposes storage costs spoilage suppliers fisherman find c...