Use the graphs to explain the process by which the market adjusts to an equilibrium.
Market equilibrium occurs at the intersection of supply and demand.
At this point, the quantity demanded equals the quantity supplied and the plans of buyers and sellers are coordinated. For prices above the equilibrium price, the quantity supplied exceeds the quantity demanded. The surplus leaves sellers with unsold goods. In an effort to sell the surplus the seller reduce the price. The price continues to fall until the surplus is eliminated.