The equilibrium curve indicates the price at which the supply and demand for your product meet. Any change in the price, supply or demand can affect the entire curve.

Businesses study demand to price products to meet demand and generate profits. The demand curve demonstrates visually how the decreasing price for a product increases the quantity purchased.

The equilibrium market price of a good is the price at which quantity supplied equals quantity demanded. Graphically, the supply and demand curves intersect at the equilibrium price.

If you want to know how efficiently a company is producing goods to meet demand, you can look to the equilibrium level of income.

Equilibrium quantity is when there is no shortage or surplus of an item. Supply matches demand, prices stabilize and, in theory, everyone is happy.

What is the law of supply and demand? The law of supply and demand is an economic theory asserting that supply and demand will meet each other at a certain equilibrium price.