Question

The place where demand and supply of a commodity meet is known as _____________.
Fill in the blank.

Answer 1

The answer is equilibrium point.

The place where demand and supply of a commodity meet is known as equilibrium point. In other words, the equilibrium point is the point at which the quantity demanded exactly matches the quantity supplied.

From a consumer’s point of view, his/her utility is maximum at the equilibrium point. Similarly, in the case of a business firm, the company’s profit is maximum at the equilibrium point. This implies that the company’s output is such that the marginal revenue equals the marginal cost.

Answer 2

The place where demand and supply of a commodity meet is known as equilibrium point .