Question

In 1-2 sentences, explain why there is no excess demand or excess supply at the equilibrium price.

Answer 1

Answer,

At Equilibrium price is the price the demand of a product is equal to the supply of a product.At equilibrium there is no shortage or surplus.Excess demand occurs when the quantity demanded is more than the quantity supplied at a price lower than the equilibrium price.Excess supply occurs when the quantity supplied is higher than the quantity demanded at a price higher than the equilibrium price.At equilibrium price is where the demand and supply curve meet and there is no shortage or surplus.