The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are willing to purchase.

Question

Quizplus · Accepted Answer

The equilibrium or market price exists when the supply of a product is equal to the amount that consumers are willing to purchase. At this point, there is no surplus or shortage of the product, and the price is stable. If the supply exceeds the amount that consumers are willing to purchase, there will be a surplus of the product, and the price will decrease until it reaches the equilibrium level.

The Equilibrium or Market Price Exists When the Supply of a Product