When a market is in equilibrium,

Question

Quizplus · Accepted Answer

In equilibrium, the quantity demanded equals the quantity supplied, meaning there is no shortage or surplus of the commodity in question. The equilibrium price is the price at which this occurs, and the supply and demand curves intersect at this price. While the slopes of the supply and demand curves are related to equilibrium, they do not necessarily have to be the same. The number of buyers and sellers does not have to be equal either. Finally, while some individuals may have as much of the commodity as they want, this is not a requirement for market equilibrium.

When a Market Is in Equilibrium