Economics Consumer Surplus And Producer Surplus Questions
Market equilibrium is a state in which the quantity demanded by consumers is equal to the quantity supplied by producers at a specific price level. At this point, there is no shortage or surplus in the market, and the market is said to be in balance. The equilibrium price is determined by the intersection of the demand and supply curves, and the equilibrium quantity is the quantity exchanged at that price. In this state, both consumers and producers are satisfied, and there is no incentive for any party to change their behavior.