Market equilibrium happens when the amount people want to buy is equal to the amount that is available to sell. This balance helps to decide the price and quantity of goods in a competitive market.
Equilibrium Price: This is the price where the number of items buyers want to purchase matches the number sellers want to offer.
Equilibrium Quantity: This is the total amount of goods that are exchanged at the equilibrium price.
Let’s say there’s a product where people want to buy 100 units at a price of £10, and sellers are also ready to sell 100 units at that same price of £10. In this case, the market is in equilibrium.
If either demand or supply changes, it can lead to new points of equilibrium. This shows how changes in what people want or how much it costs to make things can affect the market.
Market equilibrium happens when the amount people want to buy is equal to the amount that is available to sell. This balance helps to decide the price and quantity of goods in a competitive market.
Equilibrium Price: This is the price where the number of items buyers want to purchase matches the number sellers want to offer.
Equilibrium Quantity: This is the total amount of goods that are exchanged at the equilibrium price.
Let’s say there’s a product where people want to buy 100 units at a price of £10, and sellers are also ready to sell 100 units at that same price of £10. In this case, the market is in equilibrium.
If either demand or supply changes, it can lead to new points of equilibrium. This shows how changes in what people want or how much it costs to make things can affect the market.