Question

Define market equilibrium.

Hint:

Equilibrium is the market's balance point, where buyers want to buy the exact amount that sellers want to sell.

Answer 1

Market equilibrium is a situation in a market where the quantity of a good or service demanded by consumers is exactly equal to the quantity supplied by producers. At this point, the market "clears," and there is no pressure for the price to change. The price at which this occurs is called the equilibrium price, and the quantity is the equilibrium quantity.