Question

In three to four sentences, explain if there is excess supply or demand of goods at the equilibrium price and why.

Answer 1

At the equilibrium price, there is no excess demand or supply of goods or services in the market

Step-by-step explanation:

The equilibrium price represents a market price in which the quantity supplied matches the quantity demanded. Both sellers and buyers are happy with that price level for the stated volume. The equilibrium price is identified as the intersection of demand and supply curves in a graph. Because the quantity supplied match with quantity demanded, there is no excess or shortage of either demand or supply in the market.