Market Equilibrium
Introduction
Equilibrium
in economics refers to a situation in which the forces of that determines the
behavior of some variable are in balance and therefore exert no pressure on the
variable to change. Market equilibrium occurs when the quantity of a commodity
demanded in the market per unit of time equals the quantity of the goods
supplied to the market over that particular period (Tewari, 2008). This means
that when a market is at equilibrium, there is no tendency for any price change
since there is a stable price provided by the existing market conditions.
