Equilibrium Price

  1. What is equilibrium price?

The equilibrium price is where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and that the market is in a state of equilibrium.

  1. How has Alfred Marshall classified time period?

He classified it into three types.

  1. Market period or very short period
  2. Short period and
  3. Long period
  4. What is short period?

During this period supply can be altered to some extent.

  1. What is long period?

During this period supply can be altered fully.

  1. What is market period or very short period?

During this period the time allotted for supply is very limited.

Leave a Reply

Your email address will not be published. Required fields are marked *