Answer is given below :
Step-by-step explanation:
- There are buyers and sellers in the market. Buyers are likely to call everyone who looks appropriate, if there are only a few. Sellers want to sell products or services to get product surplus. Therefore, the whole system depends on earning profit or loss.
- Improve on their own in a free financial market; Suppose the consumer surplus exceeds the producer surplus, with some sellers leaving the market, thereby reducing supply and increasing price
- This reduces the surplus of additional customers.
- There is competition between buyers and sellers. Such competition will stabilize the market economy. Due to this competition the market has to reach equilibrium on its own; There should be no regulatory control
- The vertical axis represents the value and the horizontal axis represents the size. Suppose the market price is P1, where supply exceeds DV demand; This is a surplus sector.
- Some suppliers leave the market because their products are not sold; From the availability of products it reduces the supply from V to E, as well as increases the demand
- This creates demand from D to E. Point E, the equilibrium level, is now established, where demand and supply control outweigh control; Equilibrium price p.