Definition
- Equilibrium price
- Equilibrium price is the only price where the plans of consumers and the plans of producers agree.
- Not to be confused with: Equilibrium quantity
- Equilibrium quantity is the amount bought and sold at that price, where quantity demanded equals quantity supplied.
Test yourself
What is the difference between equilibrium price and equilibrium quantity?
The equilibrium price is where the market settles; the equilibrium quantity is how much changes hands there.