Question

The price at which demand and supply equate to each other is called ________ price. (general / equilibrium / short run / reserve), Fill in the blank with appropriate alternative given in the bracket.

Answer 1

Answer : EQUILIBRIUM.


Few lines -

The Price at which the demand and supply equate to each other is called "Equilibrium" price.


If price falls then the demand rises. If price rises then the demand falls. On the other hand, if the price rises then the supply also rises by suppliers. If the price falls then the supply falls by suppliers or producers. When supply and demand of the market are equal then it is said to be "Equilibrium" . when the demand of the goods is equal to the supply of goods it is known as Equilibrium.