MARKET EQUILIBRIUM ; EQUILIBRIUM PRICE AND EQUILIBRIUM QUANTITY.

UNDERSTAND THE CONCEPT OF MARKET EQUILIBRIUM. THE WORD EQUILIBRIUM DESCRIBES A MARKET SITUATION WHERE THE QUANTITY SUPPLIED EQUALS THE QUANTITY DEMANDED, AND AT THAT POINT, THERE IS EFFICIENT ALLOCATION OF RESOURCES AND THIS MEANS THERE IS NO SURPLUS OR SHORTAGE. SO, AT EQUILIBRIUM THE MARKET IS SAID TO CLEAR. THE PRICE AT WHICH THE MARKET CLEARS IS CALLED EQUILIBRIUM PRICE AND THE CORRESPONDING QUANTITY DEMAND AND SUPPLY IS CALLED EQUILIBRIUM QUANTITY. FOR MORE ON MARKET EQUILIBRIUM, KINDLY CLICK THE LINK TO WATCH THE FULL VIDEO FOR CLEARER UNDERSTANDING. THANK YOU.