Question

What is meant by equilibrium price and production ?

Answer 1

Answer:

Equilibrium price is the price where the demand for a product or a service is equal to the supply of the product or service. At equilibrium, both consumers and producers are satisfied, thereby keeping the price of the product or the service stable.

Answer 2

The price at which demand and supply of the product are equal is called equilibrium price.

When the firm gets maximum profit with the combined prices and output is called equilibrium production.

What are the characteristics of equilibrium price?

• The manufacturer sells the various products and customers buy the product which they want
• The price of equilibrium is constant
• The customers and the producers are satisfied with the price of the product at equilibrium
• If there is a shortage of goods with a change in price then it is a condition when demand is more than the supply of the product