The equilibrium point is the intersection point on a graph where quantity demanded equals quantity supplied. It represents a state of balance or stability in an economic system.
Related terms
Disequilibrium: A situation where quantity demanded does not equal quantity supplied, leading to either excess supply (surplus) or excess demand (shortage).
Price Mechanism: The interaction between buyers and sellers that determines prices in a market economy.
Market Equilibrium: A state where there is no tendency for change because supply equals demand at the prevailing price.