Market equilibrium: Table
Channel: econom
Date: 24/11/2015

Market equilibrium is determined by the interaction between the forces of demand and supply. A market is in equilibrium when the quantity demanded is equal to the quantity supplied. At the price at which this occurs is called the equilibrium price.
At a price higher than the equilibrium price an excess supply exists while at a price lower than the equilibrium price an excess demand exists.
An excess supply puts downward pressure on prices while an excess demand puts upward pressure on prices.