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The point where supply and demand intersect is the equilibrium point. This is the point where quantity demanded and quantity supplied are equal. The point where supply and demand intersect is the equilibrium point. This is the point where quantity demanded and quantity supplied are equal.
Equilibrium occurs when a buyer and seller agree on a price, thereby signaling that demand and supply are equal. An increase in the demand for a product, followed by a surplus and a subsequent fall in price, results in a new market equilibrium. This new point at which demand meets supply may be higher or lower than the previous equilibrium.