Equilibrium Price and Quantity:
Graphically, equilibrium occurs at the intersection of the demand and supply curves. Any price above the equilibrium price will result in excess supply or surplus which will cause a reduction in the market price. On the other hand, any price below the market equilibrium price will result in excess demand or shortage which will cause a rise in the market price.
![592_Equilibrium Price and Quantity.png](https://www.expertsmind.com/CMSImages/592_Equilibrium%20Price%20and%20Quantity.png)
Figure : Equilibrium Price and Quantity