The market price at which the quantities of commodities supplied and requested are equal is known as the equilibrium price.
When market demand and supply are balanced, prices become stable. Equilibrium is the term for this. Generally speaking, a surplus of items or lower prices result in more demand, whereas a shortage or undersupply results in higher prices, which lower demand. the cost at which a commodity's supply and demand are balanced.
When a major index has a period of consolidation or sideways movement, which shows that the forces of supply and demand are virtually equal, the market is deemed to be in equilibrium.
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