Market equilibrium is a state in which the supply and demand of a product or service in a given market are equal. When this occurs, the price of the product or service remains stable, and there is no surplus or shortage of the product or service. In this article, we will discuss what occurs during market equilibrium.
Market Equilibrium
Market equilibrium is a state of balance between supply and demand in a given market. When the supply and demand of a product or service are equal, the price of the product or service remains stable, there is no surplus or shortage of the product or service, and no further adjustments need to be made. In other words, the market is in equilibrium when the quantity of the product or service that buyers are willing to purchase is equal to the quantity that sellers are willing to supply.
What Occurs?
When the market is in equilibrium, the following occurs:
- The price of the product or service remains stable.
- The quantity of the product or service supplied is equal to the quantity of the product or service demanded.
- There is no surplus or shortage of the product or service.
- No further adjustments need to be made in order to maintain equilibrium.
In conclusion, market equilibrium is a state of balance between supply and demand in a given market. When the market is in equilibrium, the price of the product or service remains stable, the quantity of the product or service supplied is equal to the quantity of the product or service demanded, there is no surplus or shortage of the product or service, and no further adjustments need to be made in order to maintain equilibrium.
