Having analyzed supply and demand separately we now combine them to see how they determine the quantity of a good sold in a market and its price. Equilibrium The market supply curve and market demand curve together. Notice that there is one point at which the supply and demand curves intersect. This point is called the market’s equilibrium. The price at this intersection is called the equilibrium price and the quantity is called the equilibrium quantity. Here the equilibrium price is $2.00 per cone and the equilibrium quantity is 7 ice cream. The dictionary defines the word equilibrium as a situation in which various forces are in balance and this also describes a market’s equilibrium. At the equilibrium price the quantity of the good that buyers are swilling and able to buy exactly balances the quantity that sellers are willing and able to sell. The equilibrium price is sometimes called the market- clea...