Businesses seek an equilibrium price because it represents the point at which the supply of a good or service matches the demand for it. At the equilibrium price, the quantity of goods or services supplied by businesses is equal to the quantity demanded by consumers. This ensures that businesses are able to sell all of their goods or services at a fair market price, maximizing profits and minimizing wastage. Additionally, the equilibrium price helps businesses predict consumer behavior and make informed decisions about production levels and pricing strategies. By maintaining an equilibrium price, businesses can operate efficiently and effectively in the market.
