Q.Write a short note on: Equilibrium Price

Equilibrium price is the price at which quantity demanded equals quantity supplied, fixed by the intersection of the demand and supply curves.

Explanation

Equilibrium price is the price of a commodity at which the amount that buyers are willing to buy is exactly equal to the amount that sellers are willing to sell. It is determined by the forces of demand and supply together — at the point where the demand curve and the supply curve cut each other. At the equilibrium price there is no surplus (excess supply) and no shortage (excess demand), so the market clears and the price stays stable …