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Question: The equilibrium price is the price at which the quantity demanded is greater than the quantity supplied.
Asked by yo2
Actually, the equilibrium price is the price at which the quantity demanded equals the quantity supplied. This is the point where the supply and demand curves meet. Neither surplus nor shortage exists at this point. If the price is set too high, it will exceed the demand (supply is greater than demand), leading to a surplus. If it's set too low, demand will surpass supply, causing a shortage.
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