What is market equilibrium and how is it determined?

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Solution

Market equilibrium is achieved when the demand and supply curves intersect each other. At this point the demand and supply are equal. The corresponding price is known as equilibrium price and the quantity is known as equilibrium quantity.

Also read:

Consumer Equilibrium Indifference Curve Approach

Market Equilibrium Applications

Features of Indifference Curve

Market Equilibrium

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