Market equilibrium:  Demand and supply curves
Channel: Werner Lost
Date: 2012-11-18

Market equilibrium occurs where the demand curve intersect 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.