When are equilibrium prices achieved?
Is it b
No it d
Equilibrium prices are achieved when the supply and demand for a particular product or service are equal. In other words, it is the point where the quantity demanded by consumers matches the quantity supplied by producers. To determine when equilibrium prices are achieved, you need to consider the interaction between supply and demand.
To understand this concept, you will need to have access to the supply and demand curves for the specific product or service you are interested in.
1. Start by plotting the supply curve, which shows the relationship between the quantity of a product that suppliers are willing to produce and the price at which they are willing to sell it. The supply curve slopes upward, indicating that as the price increases, the quantity supplied also increases.
2. Next, plot the demand curve, which represents the quantity of a product or service that consumers are willing to purchase at different price levels. The demand curve slopes downward, suggesting that as the price increases, the quantity demanded decreases.
3. The equilibrium price is determined at the point where the supply and demand curves intersect. This price represents the market price at which the quantity supplied matches the quantity demanded.
4. The equilibrium quantity is the quantity bought and sold at the equilibrium price. It represents the point where supply and demand are in balance.
It is important to note that equilibrium prices can change over time due to shifts in supply or demand. Factors such as changes in production costs, consumer preferences, or government regulations can affect these curves and consequently influence equilibrium prices.