What is market equilibrium?
Answer (2)
Market Equilibrium is when the supply and demand curves intersect, the market is in equilibrium. This is where the quantity demanded and quantity supplied are equal. The corresponding price is the equilibrium price or market clearing price, the quantity is the equilibrium quantity.
Market equilibrium occurs when the quantity demanded by consumers equals the quantity supplied by producers, resulting in a stable price and quantity in the market. This point is represented graphically where the demand and supply curves intersect. Changes in external factors can disrupt this equilibrium, causing shifts in price and quantity.
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