Question

Which of the following best describes the concept of "equilibrium price"?

Answer 1

I believe your answer is :

Both sellers and buyers are happy with the price and quantity.

Supply and Demand must be at the same point when 'graphed'

hope this helps

Answer 2

Answer:

Both sellers and buyers are happy with the price and quantity.

Explanation:

The demand curve determines the price that consumers are willing to pay for each unit consumed of good X. The supply curve is the price at which producers are willing to launch the good to the market. If in an initial situation at a given price the amount that consumers are willing to acquire is greater than the quantity offered by the producers, that is because the price is too low and shortages will occur. As the price rises, there will be consumers who will withdraw from the market and there will be new producers willing to produce the good at the new price. This adjustment process will continue until the amount that consumers are willing to buy at the market price exactly matches the amount that producers are willing to launch at that price. That is the so-called market equilibrium price.