Define The Equilibrium ?
Answers
Step-by-step explanation:
Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. The balancing effect of supply and demand results in a state of equilibrium.
Answer:
"Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand—while an under-supply or shortage causes prices to go up resulting in less demand. The balancing effect of supply and demand results in a state of equilibrium."
"The equilibrium price is where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and the market is in a state of equilibrium."