The behaviour of buyers and sellers drives markets toward equilibrium.

Question

Quizplus · Accepted Answer

The interaction between buyers and sellers in the market results in the determination of the equilibrium price and quantity. Buyers are willing to buy products at a certain price, whereas sellers are willing to sell their products at a certain price. The market reaches equilibrium when buyers' demand and sellers' supply are equal at a particular price. Thus, the behavior of buyers and sellers is crucial in driving markets toward equilibrium.

The Behaviour of Buyers and Sellers Drives Markets Toward Equilibrium