The equilibrium price and equilibrium quantity occur where the supply and demand curves cross. The equilibrium occurs where the quantity demanded is equal to the quantity supplied.

The law of demand states that a higher price typically leads to a lower quantity demanded The law of supply says that a higher price typically leads to a higher quantity supplied

demand — the relationship between price and the quantity demanded of a certain good or service. supply — the relationship between price and the quantity supplied of a certain good or service. equilibrium — the situation where quantity demanded is equal to the quantity supplied; the combination of price and quantity where there is no economic pressure from surpluses or shortages…. law of demand — the common relationship that a higher price leads to a lower quantity demanded of a certain good or service and a lower price leads to a higher quantity demanded, while all other….