Explain the concept of an equilibrium price; carefully explaining in what way the price is an equilibrium price. Your explanation should include how market forces restore equilibrium if it is disturbed.
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In other words, it is the price at which the market clears, meaning that there is no excess supply or demand. The equilibrium price is determined by the interaction of supply and demand in the market. When the price is too high, the quantity supplied exceeds the Show more…
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