Your question is a bit confusing because of the word "set," and also because you didn't specify what type of market. A producer will equate the Price to the marginal cost, and the consumers will demand what they demand at a certain price, this demand curve is derived via their marginal utility for the good, so demand and supply curves are marginal utility and marginal cost curves in a sense.
Where the supply and demand are equal is the equilibrium point in the market, this means that each party in the economy is doing as good as they can be given the specific production functions and utility functions they face.
If you're looking at a graph, it is where supply and demand intersect, the vertical (Y) axis is the price and the x axis is the quantity demanded of that good.
Equilibrium.
In elementary economics equilibrium is the intersection between the supply and demand curves. When quantity supplied is said to equal quantity demanded the market has then reached equilibrium.
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
it is a condition of price stability,where the quantity demanded equal the quantity supplied.
Quantity supplied will exceed quantity demanded, so the price will drop.
Equilibrium.
Quantity demanded (QS) is the amount of a product or service wanted by the market. QS is corresponded to quantity supplied (QS) that regards how much of the what is wanted is actually offered. When QD equals QS the market is said to be at equilibrium.
In elementary economics equilibrium is the intersection between the supply and demand curves. When quantity supplied is said to equal quantity demanded the market has then reached equilibrium.
If the price is low, suppliers may well not wish to supply the full quantity that is demanded by consumers.The quantity demanded and quantity supplied determines the equilibrium price in the market. The quantity where these two are equal, that is where the market price is set.
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it is a condition of price stability,where the quantity demanded equal the quantity supplied.
Quantity demanded is less than quantity supplied.
Quantity supplied will exceed quantity demanded, so the price will drop.
The importance of equilibrium price and quantity is that it creates a point where there is no pressure on the market to shift supply or demand. Suppliers supply exactly the quantity demanded.
Demand and supply analysis concludes that the price of a give product in the market will vary and settle at a point where there is equality between the quantity demanded and the quantity supplied. When both are equal, the price and the quantity will be at equilibrium.
True. As long as it is quantity demanded and not demand overall.
Demand and supply analysis concludes that the price of a give product in the market will vary and settle at a point where there is equality between the quantity demanded and the quantity supplied. When both are equal, the price and the quantity will be at equilibrium.