Market equilibrium: Demand and supply curves
Channel: econom
Date: 24/11/2015

Market equilibrium occurs where the demand curve interest the supply curve. At the equilibrium price the quantity demanded is equal to the quantity supplied.
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.