Question

Explain Market equilibrium, equilibrium price, and equilibrium quantity

Answer 1

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Question:

Answer:

Equilibrium:

Equilibrium is a stage were, at a specif price level demand is equal to supply. Equilibrium point is that point where demand and supply curve cross each others.

Market Equilibrium:

Equilibrium is a stage were, at a specif price level, the quantity demand of a good is equal to the quantity supply of that particular good in a market. Or say that Market Equilibrium is the point or stage where, the market demand is equal to market supply at a particular price level.

Equilibrium price:

Equilibrium price is that price at which the quantity demand of good is equal to quantity supply of good. Equilibrium price is that price level where consumers are ready to buy and producers are ready to sell.

Equilibrium quantity:  

Equilibrium quantity is that quantity where, at a specif price level demand is equal to supply.

Now understand it trough an example and graph:

Lets assume there is a product a product "X".

Price ($)	Quantity Demand	Quantity Supply
100	20	100
80	40	110
50	100	130
30	150	150

In this graph "D" is a demand curve and "S" is a supply curve. In this graph "E" is equilibrium point because here demand and supply curve cross each other. $30 is equilibrium price because here quantity of demand equal to quantity of supply and Equilibrium quantity is 150 (because at this quantity demand is equal to supply.

######I have attached the graph below. Please find the attachment.

Thank You