Define the following terms: (a) Equilibrium (b) Equilibrium price (c) Equilibrium quantity (d) Market equilibrium.
Define the following terms:
(a) Equilibrium
(b) Equilibrium price (c) Equilibrium quantity (d) Market equilibrium.
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a) Equilibrium is the state in which market supply and demand balance each other, and as a result, prices become stable.
b) Equilibrium price refers to the price where market demand equals market supply.
c) Market equilibrium refers to the point where market demand of a commodity equals market supply of a commodity.
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