Answer: prices are set when equilibrium is reached in micro economics.
Explanation:The market is said to be at a equilibrium point where the demand and supply curve intersect. This is the point where the quantity demand and supply supplied are equal, furthermore, prices are set when equilibrium point is reached.
The equal effect of supply and demand results in a state of equilibrium. The state in which the quantity supply and quantity demanded are at equivalent is the equilibrium point. Moreover, an over supply of goods and services causes reduction in price and result to higher demand. Every market has its own equilibrium, it last until either supply or demand changes which will effect price changes.
