When a market is in equilibrium

Question

Quizplus · Accepted Answer

In equilibrium, the quantity demanded by consumers is equal to the quantity supplied by producers, which means the market is in balance. There is no automatic tendency for either the supply or demand curve to shift because there is no imbalance in the market forces. If there were a shortage or surplus, there would be a force that would push the market back towards equilibrium, which would cause either the supply or demand curve to shift.

When a Market Is in Equilibrium