Equilibrium price

The equilibrium price is the price in a market where demand is equal to supply. The equilibrium price can also be said to be the quantity where the marginal benefit for buyers is equal to the marginal cost of the sellers.

The equilibrium price is the prevailing price on a market. If demand or supply is affected by some external factor, a new equilibrium price will be found. If a market is regulated, it may happen that the market price differs from the market equilibrium price. Adjustments may be needed sometimes if the equilibrium price not is reasonable, taking into account other important aspects of the society.