Equilibrium is a situation in which the market price has reached the level at which quantity supplied equals quantity demanded. At equilibrium price, the quantity of the good that buyers are willing and able to buy exactly balances the quantity that sellers are willing and able to sell. The equilibrium price is sometimes called market-clearing price because, at this price, everyone in the market has been satisfied : Buyers have bought all they want to buy, and sellers have sold all they want to sell.
No comments:
Post a Comment