Question 1157779: What does market equilibrium mean? If equilibrium does not exist, how will it be established? Found 2 solutions by ikleyn, MathLover1:Answer by ikleyn(52787) (Show Source):
Market equilibrium is a market state where the supply in the market is equal to the demand in the market. Since there is neither surplus nor shortage in the market, price tends to remain stable in this situation.
If equilibrium does not exist, how will it be established?
If equilibrium does not exist, then the securities would be purchased as well as sold until a symmetry price can be established.
