In a market, at the equilibrium price,

Question

Quizplus · Accepted Answer

At the equilibrium price, the quantity demanded by buyers equals the quantity supplied by sellers. This means that the market is in balance, and neither buyers nor sellers can do business at a better price. If the price were lower, more buyers would want to purchase the product than sellers would be willing to supply, resulting in a shortage. If the price were higher, more sellers would be willing to supply the product than buyers would want to purchase, resulting in a surplus. Therefore, the equilibrium price is the price at which the market is in balance and there is no pressure for the price to change.

In a Market, at the Equilibrium Price