Definition, Meaning & Synonyms
equilibrium-point
noun
ɪˌkwɪlɪˈbrɪəm pɔɪnt
Definition
The point at which the quantity demanded and the quantity supplied of a good or service are equal, resulting in a stable market environment.
Examples
- The equilibrium-point in this market is $50 for 100 units.
- At the equilibrium-point, both buyers and sellers are satisfied.
- Understanding the equilibrium-point helps businesses make informed decisions about pricing.
Meaning
In economics, the equilibrium point indicates the price and quantity at which the market operates efficiently, without excess supply or demand.
Synonyms
- balance point
- market equilibrium
- price-quantity balance
