How is the equilibrium price of goods determined? Explain with the help of demand and supply schedule and diagram
Answers
Answered by
2
Answer:
The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.
Answered by
5
✯Aɴsᴡᴇʀ✯
The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. A surplus exists if the quantity of a good or service supplied exceeds the quantity demanded at the current price; it causes downward pressure on price.
Similar questions