Answer to Question #268602 in Microeconomics for Althea Amor Galdo

Question

How equilibrium price and quantity or determine the market using the demand and supply concepts explain?

Answer 1

A market is said to be in equilibrium if the quantity supplied is equal to the quantity demanded. It is at that point where price is said to be at equilibrium too. Using the demand and supply concepts, one can draw the supply curve and the corresponding demand curve. The intersection of the two curves gives the equilibrium state at the market; the corresponding market quantity and price.