Question

Equilibrium price implies that everyone who would like to purchase a product is able to.

a True

b False

Answer 1

True

Equilibrium is a state where demand and supply of a product balances each other and the price of the goods become stable. Over supply tends the price to go down where lesser supply results in price hike.The balance of both;demand and supply results in the state of equilirium.Equilirium price is where supply of goods matches its demand.Equilibrium price is one where demand and supply curve intersect each other.Equilibruim price is one where desires of consumers match desire of producer. Equilibruim price is the one at which consumer who desires to puchase the goods is able to purchase because it is a reasonable price of the good and also affordable for the producer as it provides them with reasonable profit.