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Simulator · Microeconomics · ~5 min
The Price Maker
Manhattan, 1892. A summer heat wave. You're selling lemonade — and you set the price. Move the price slider. Watch what the market does.
What's happening
Move the price slider to see how quantity supplied and quantity demanded respond. The market clears where the two lines cross.
The idea, in one paragraph
A market clears at the price where the quantity buyers want equals the quantity sellers will supply. Set the price too high, sellers flood in and buyers walk away — surplus. Too low, buyers line up and sellers won't produce enough — shortage. Real markets don't stay in either state for long, because prices adjust. This is Adam Smith's "invisible hand" written as arithmetic.