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Equilibrium price means
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- Price determined by demand and supply
- Price determined by Cost and Profit
- Price determined by Cost of production
- Price determined to maximise profit
- Price determined by demand and supply
Correct Option: A
Equilibrium price is a state in economy where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and that the market is in a state of equilibrium. In short, it is the market price at which the supply of an item equals the quantity demanded.