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Learn how shifts in supply or demand affect equilibrium price and equilibrium quantity, why shortages or surpluses happen, and how businesses, consumers, and policymakers respond to these changes.
Read here : https://www.letsdiskuss.com/post/market-equilibrium-supply-demand-explained
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Market equilibrium is a situation in which the supply and demand of a particular good or service in a market are in balance, meaning that the quantity of the good that suppliers are willing to offer for sale is equal to the quantity of the good that consumers are willing to buy. When a market is in equilibrium, there is no tendency for it to change.
Market equilibrium is a fundamental concept in economics, and is the basis for determining the price and quantity of a good or service. It is important to understand that market equilibrium does not necessarily mean that the price of a good is the same as the price at which it is sold. Instead, it means that the price at which the good is sold is the price at which the quantity of the good demanded by consumers is equal to the quantity of the good supplied by producers.
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