Can You Explain Equilibrium Price?

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amber Jhon Profile
amber Jhon answered
The price at which the demand and the supply of a product are equal is known as equilibrium price.

Equilibrium price assumes that Qs = Qd

where, Qs is quantity supplied and Qd is demand of product. Now, it can be explained with a graph, in which quantity comes on x-axis and price of the product comes on y-axis. The demand curve is  downward sloping linear curve and the supply curve is upward sloping linear curve. The points where they cross each other is the equilibrium price.

Please have a look on graph, which shows equilibrium price!

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