Explain the concept of equilibrium.

Economics Supply And Demand Questions



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Explain the concept of equilibrium.

The concept of equilibrium in economics refers to a state of balance or stability in a market where the quantity demanded by consumers is equal to the quantity supplied by producers. At equilibrium, there is no excess supply or excess demand, resulting in a stable market price. It is the point where the forces of supply and demand intersect, and there is no tendency for the price or quantity to change. In this state, the market is efficient, and resources are allocated optimally.