Price equilibrium:

 The equilibrium price is the market price where the

quantity of goods supplied is equal to the quantity of
goods demanded. This is the point at which the
demand and supply curves in the market intersect at
equilibrium both. Consumer and producer are
satisfied, thereby keeping price of product or service
stable.
Quantity of goods Supplied = Quantity of goods
Demanded
Example
Price Quantity Demanded Quantity Supplied

100 5 50

90 12 41

80 18 35

70 22 28

60 25 25

50 34 22

40 41 18

30 47 14

20 50 9

10 55 5
 Price Equilibrium Graph
60

50

40

30 Quantity Demanded
Quantity Supplied
20 Equilibrium Point

10

0
0 20 40 60 80 100 120
 Equilibrium State
Price Quantity Demanded Quantity Supplied

100 5 50

90 12 41

80 18 35

70 22 28

60 25 25

50 34 22

40 41 18

30 47 14

20 50 9

10 55 5
 In the given table,
Quantity Demanded = Quantity Supplied
At the price of ₹60 therefore it is the equilibrium price.
 At any other price level, there is either surplus or
shortage.
Disequilibrium-
 In a market setting, disequilibrium occurs when
quantity supplied is not equal to the quantity
demanded; when a market is experiencing a
disequilibrium, there will be either a shortage or a
surplus.