GENERAL KNOWLEDGE

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

Detailed explanation-2: -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.

Detailed explanation-3: -In economics, quantity demanded refers to the total amount of a good or service that consumers demand over a given period of time. Quantity demanded depends on the price of a good or service in a marketplace.

Detailed explanation-4: -The market for coffee is in equilibrium. Unless the demand or supply curve shifts, there will be no tendency for price to change. The equilibrium price in any market is the price at which quantity demanded equals quantity supplied. The equilibrium price in the market for coffee is thus $6 per pound.

Detailed explanation-5: -Equilibrium and disequilibrium are distinct situations in economics. Equilibrium refers to perfect competition, a theoretical market structure in which all suppliers are equal, and overall supply and demand are equal. Conversely, disequilibrium describes a market with an imbalance of supply and demand.