Microeconomics · Explainer · 3 min · 26.09.2026 10:15
What market equilibrium looks like in one picture
Equilibrium is the price where the buyer’s wish and the seller’s offer meet.
The demand curve shows how much people buy at different prices. The supply curve shows how much producers are willing to sell.
Where they cross, the market clears: extra goods do not sit on the shelf, and there is no queue.
If the state sets a price below that point, demand exceeds supply. A shortage is that gap, not simply “too few goods.”