Question

Explain equilibrium in brief.

Answer 1

Answer:

• a state of balance, especially between forces or influences that are working in opposite ways.

Explanation:

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. The balancing effect of supply and demand results in a state of equilibrium.