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Maurinko [17]
3 years ago
11

What does it mean to reach an equilibrium price?

Social Studies
1 answer:
emmasim [6.3K]3 years ago
3 0

when the amount of goods supplied is equal to the amount of demand we can attain the equilibrium price.

<u>Explanation</u>:

  • when the number of goods supplied is equal to the demand then there will be a proper cycle flow of goods according to the demand so the price will meet an equilibrium stage.  
  • when the number of goods supplied is more than the demand the material will be losing its equilibrium price which in turn affects the supplier and so there is a chance to stop production.
  • when the number of goods supplied less to the amount of demand there exists the demand which hampers the price to stay equilibrium, in turn, it will also encourage hoarding.

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