Question

How is a market equilibrium defined in a perfectly competitive market? Find the Answer at BYJU'S

Answer 1

Supply and demand are two opposite forces in a market. Equilibrium price is determined when the supply and demand intersect each other.

Market equilibrium in a perfectly competitive market is achieved when the market demand equals the market supply. In the short run , this equilibrium will be affected by the demand, while in the long run, the demand as well as supply will be impacting the equilibrium.

Also read:

• Market Equilibrium Applications
• Features of Indifference Curve
• Market Equilibrium
• The Theory of the Firm Under Perfect Competition
• Perfect Competition Defining Features

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