Question

Explain graphically and intuitively long-run equilibrium and how changes in a market affect the equilibrium in the short and long run.

Answer 1

Equilibrium is a point where a consumer have no tendency to change their consumption to any other level because at the equilibrium point consumer gets maximum level of satisfaction compared to any other level of consumption.

For an organisation equilibrium point is that point where demand and supply are equal at that point their no any excess of supply or demand.