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How is an equilibrium price determined?

User Kevin Pei
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2 Answers

5 votes

Answer:

The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. ... A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.

User Dan Halliday
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4 votes

Answer:

By the intersection of supply and demand.

Step-by-step explanation:

The equilibrium price is the price at which the quantity demanded equals the quantity supplied. It is determined by the intersection of the demand and supply curves. ... A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease.

User EnemyBagJones
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4.4k points