ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The equilibrium price is the only price where the desires of consumers and the desires of producers agree-that is, where the amount of the product that consumers want to buy (quantity demanded) is equal to the amount producers want to sell (quantity supplied).

Detailed explanation-2: -A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price.

Detailed explanation-3: -Equilibrium: the quantity people are willing to buy equals the quantity people are willing to sell at each price. Excess Demand: the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage.

Detailed explanation-4: -Expert Answer An equilibrium price exists in the market when the quantity demanded(Qd) is exactly equal to the quantity supplied(Qs) that is there is neither shortage nor surplus existing in the market.

Detailed explanation-5: -An equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal. The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy.