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Equilibrium in microeconomics-
Economics is a strong subject and you need not be smart to understand it but intelligent well enough. It is a very common term that is used by any economic student. You will also know that the term equilibrium has been derived from Latin word “aequilibrium” that means balance that is equal. In case of markets where all demand and supply happens it means, a condition where all economic forces are perfectly balanced without any external force or influences.
It is a place where the prices in the market are determined by a competition where amount of goods and services sought by all buyers are equal to the amount of services and goods that is provided in market by sellers. It claims to be at the point where quantity that is demanded is equal to supply of that service and goods.
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