What do you understand by equilibrium price- How do the forces of demand and supply determine the equilibrium price-

Question

Toppr Admin · Accepted Answer

Equilibrium price is the price at which quantity demanded is equal to quantity supplied- Forces of demand and supply determine the equilibrium price when they are same and graphically the point at which demand and supply intersect is equilibrium point and price is determined-xA0-

What do you understand by equilibrium price? How do the forces of demand and supply determine the equilibrium price?

Equilibrium price is the price at which quantity demanded is equal to quantity supplied. Forces of demand and supply determine the equilibrium price when they are same and graphically the point at which demand and supply intersect is equilibrium point and price is determined.