Explain the Equilibrium Price in brief
Explain the Equilibrium Price in brief.
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The demand curve generally slopes downwards demonstrating that more quantity of commodity will be demanded on a lower price than at higher prices. Likewise supply curve demonstrating an upward trend where the producers will give to sell a larger quantity at a higher price than on a lower price. Therefore, the quantity demanded and quantity supplied vary with price .The price which tends to settle down or comes to stay within the market (here buyers and sellers both are satisfied) is at that quantity demanded equals quantity supplied. The point therefore formed is termed as equilibrium point and price is termed as equilibrium price.
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