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- In microeconomics, equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable1. It is the price at which supply equals demand for a product, where the hypothetical supply and demand curves intersect2. An over-supply of goods or services causes prices to go down, which results in higher demand, while an under-supply or shortage causes prices to go up resulting in less demand1.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand—while an under-supply or shortage causes prices to go up resulting in less demand.www.investopedia.com/terms/e/equilibrium.aspIn microeconomics, economic equilibrium may also be defined as the price at which supply equals demand for a product, in other words where the hypothetical supply and demand curves intersect.www.investopedia.com/terms/e/economic-equilibriu…
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