Equilibrium occurs where the demand curve intersects the supply curve.

Question

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This is a fundamental principle in microeconomics known as the law of supply and demand. Equilibrium refers to the point where the quantity demanded by buyers equals the quantity supplied by sellers, and this point is determined by the intersection of the demand and supply curves. At this point, there is no excess of either supply or demand, which means that the market is considered to be in balance.

Equilibrium Occurs Where the Demand Curve Intersects the Supply Curve