In a competitive market the equilibrium price and quantity occur where:

Question

Quizplus · Accepted Answer

The equilibrium price and quantity occur where the downward sloping demand curve intersects the upward sloping supply curve, which is the point where quantity demanded equals quantity supplied. This is because at any other price, either consumers would want to buy more than suppliers were willing to sell, or suppliers would want to sell more than consumers were willing to buy. Therefore, the market would be driven toward the equilibrium point where both the consumers and suppliers are satisfied.

In a Competitive Market the Equilibrium Price and Quantity Occur