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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.
The intersection of the supply curve and the demand curve, shown by (P * , Q *), is the market clearing condition. In this example, the market clearing price is P * = 6.67 and the market clearing quantity is Q * =6.67.