The point where supply and demand meet

ByMunyaradzi Mafaro

The point where supply and demand meet is called the equilibrium price. This happens when buyers and sellers agree on a price that makes both sides happy. The sellers want to sell just enough at this price, and the buyers want to buy just that amount. It’s like a sweet spot in the market where everything balances out perfectly.

This is shown on a supply-and-demand graph where the two lines cross. At that point, the amount that sellers want to sell matches exactly the amount that buyers want to buy. This price stabilizes the market because neither side wants to change its behavior.

For example, if ice cream costs $3, and both the ice cream shop wants to sell 100 cones at that price, and customers want to buy 100 cones at that price, then $3 is the equilibrium price. The market is balanced and happy at this point.

Munyaradzi Mafaro is a music enthusiast and he also likes to tackle topics of business, productivity, and the possibilities for growth in the digital world.