Question Details

	Username: PrettyWoman Rating: Asked to: Heng Kim Date Created: 26 Nov 2015
Category	28
Tag	Financial
Question	What is equilibrium?

Advice from Guru

Hi Pretty Woman,

Equilibrium is the state in which market supply and demand balance each other and, as a result, prices become stable. Generally, when there is too much supply for goods or services, the price goes down, which results in higher demand. The balancing effect of supply and demand results in a state of equilibrium.

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