Question

What is an example of market equilibrium?

Answer 1

A company which is involved in the selling of mangoes will have an equal supply and demand in summer. But after the summer season the demand for mangoes will still be there, but supply will be less.

In such a situation, the company can raise the price of the mango so that the demand for the mango falls, which gradually will result in market equilibrium.

Also read:

• Consumer Equilibrium Indifference Curve Approach
• Market Equilibrium Applications
• Features of Indifference Curve
• Market Equilibrium

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