Supply and Demand Equilibrium

By Jodi Beggs, About.com Guide

Even though the concepts of supply and demand are introduced separately, it's the combination of these forces that determine how much of a good or service is produced and consumed in an economy and at what price. These steady-state levels are referred to as the equilibrium price and quantity in a market.

In the supply and demand model, the equilibrium price and quantity in a market is located at the intersection of the market supply and market demand curves. Note that the equilibrium price is generally referred to as P* and the market quantity is generally referred to as Q*.

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• Supply and Demand Equilibrium
• Market Forces Result in Economic Equilibrium
• Market Forces Result in Economic Equilibrium
• Only One Price in a Market Is Sustainable
• The Condition for Market Equilibrium
• Markets Are Not Always in Equilibrium

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