An explanation of market adjustments to changes in supply and demand, in which prices oscillate toward an equilibrium price, often forming a pattern resembling a spider web on a graph.
Competitive equilibrium refers to a market state where supply equals demand, resulting in an equilibrium price where no buyer or seller has an incentive to change their behavior.
The equilibrium price is the price at which the quantity of goods producers wish to supply matches the quantity demanders want to purchase.
Graphic representation of supply and demand schedules of a particular market showing the equilibrium point where the supply and demand curves intersect, determining the equilibrium price and quantity.
