The word ‘Equilibrium’ means – absence of changing tendency. Hence, equilibrium price refers to that situation in which changing tendency in price determining forces becomes absent.
‘’Equilibrium price is that price which is determined by demand and supply forces at that point where the demand of commodity and the supply of the commodity become equal to each other’’
Equality between demand and supply at equilibrium price means that the determined price is acceptable to both buyers and sellers i.e, the quantity which the buyer wants to buy at equilibrium price will be sold by the seller at the same price.
