Equilibrium
Definition
Price at which quantity supplied equals quantity demanded. No surplus, no shortage — no pressure for the price to move.
Example
If coffee equilibrium is $4 a cup, that's where the demand and supply curves cross.
Price at which quantity supplied equals quantity demanded. No surplus, no shortage — no pressure for the price to move.
If coffee equilibrium is $4 a cup, that's where the demand and supply curves cross.