ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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In economics, equilibrium refers to the situation in which the quantity demanded is equal to the quantity supplied for a commodity or service, that is, the amount of goods which the consumers want to consume is exactly equal to the amount of goods which the sellers want to sell in the market. At this point the price which is determined is known as the equilibrium price and the quantity exchanged is known as equilibrium quantity. In a free market this point is determined by the free forces of demand and supply.
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