Market Equilibrium

     Market Equilibrium 

Market Equilibrium is a market situation in which quantity supplied and quantity demanded is Equal.

In the above graph shows the Market Price is on vertical axis and quantity is on horizontal axis.

At point E quantity supplied and quantity demanded is equal.Demand curve is downward sloping, because when price increase of a goods and services, quantity demanded of this goods and services decreases and when the price of goods and services decrease,the quantity demand of this goods and services increase.Price and quantity demanded are negatively related.

Supply curve is upward sloping, because when's price increase of a goods and services, quantity supplied of this goods and services also increases and when the price of goods and services decrease,the quantity supplied of this goods and services decrease.Price and quantity supplied are positively related.