Supply and Demand Curves

What is a equilibrium price? In a state of equilibrium, the supply of a product can meet the demand for a product as a particular price. (8 for the price)

How many units will be demanded/supplied at that price? There will be eight units. 

 

The market for the good is flooded by more supply.  In response producers will decrease prices encourage consumers to buy.  As this happens, demands for the product should increaseAs demands increase, consumers will buy up the product and the supply should start to decrease.  As supply decreases, this drives the price of the product increase as consumers begin to compete for the remaining supply.  As the prices increase, this should decrease demand.  With fewer consumers purchasing the product, supply will start to increase. 

 

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