![](https://www.opentextbooks.org.hk/sites/opentextbooks/files/book_profile/cc_icon/by-nc-sa.png)
Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.
The price and quantity equilibrium is where demand and supply intersect. At any price above that equilibrium, the quantity supplied exceeds the quantity demanded, which results in a surplus (and no transaction between buyer and seller). At any price below, the quantity demanded exceeds the quantity supplied, which results in a shortage. Only at the intersection of demand and supply are the quantities demanded and supplied equal. The price and quantity equilibrium is stable.
![media/image3.png](http://www.opentextbooks.org.hk/system/files/resource/11/11894/11987/media/image3.png)
Figure 3.3 Demand and Supply Equilibrium
- 1526 reads