suppose that the bakers of bread face a increase within the price of flour (an input). within the market for bread, this may cause the supply of bread to decrease; and the equilibrium price to increase.
<h2>What is equilibrium price?</h2>
An equilibrium price may be a balance of demand and supply factors. there's a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change. Changes within the equilibrium price occur when either demand or supply, or both, shift or move.
<h3>What is equilibrium price and demand?</h3>
The equilibrium price is where the availability of goods matches demand. When a serious index experiences a period of consolidation or sideways momentum, it are often said that the forces of supply and demand are relatively equal and the market is in a state of equilibrium.
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