Answer to Question #48166 in Economics of Enterprise for Alyssa marie

Question

Equilibrium price is the price at which the quality of a product demanded by consumers and the quality supplied by producers is?

Answer 1

Disagree. Equilibrium is a market situation, where supply and demand are the same or equivalent as acceptable for the consumer and producer price. The equilibrium price means that goods produced as much as needed to buyers. This balance is an expression of the maximum efficiency of the market economy, since in equilibrium the market is balanced. Neither the seller nor the buyer has no internal incentives to its violation. Conversely, at any price other than the equilibrium price, the market is not balanced, and buyers and sellers seek to change the situation on the market. Thus, the equilibrium price is the price, balancing supply and demand as a result of the action of specific forces.