Market equilibrium is determined by the intersection of the supply and demand curves.
Explanation:
There is a relationship between demand and supply. And in macro economics four laws perceived in between demand and supply.
If with increasing demand supply remains unchanged it will lead to high price of commodity.
If with increasing demand supply also increase it creates a balance equilibrium in between market demand and supply.
If due to certain reason demand diminish and supply remains same in high quantity it will totally disbalance market equilibrium and both the buyer and seller will face the impact of that fluctuation.
