Question

Describe the process that leads the market toward the equilibrium.

Answer 1

A market reaches the equilibrium at a point where the demand and the supply in the market are equal, If the market has a higher supply and lower demand then there will be surplus in the market and prices will see a decline this will continue to the point where the supply doesn't decrease and demand doesn't increase.

If the price is lower than the equilibrium them the demand will fall and the price will face an upward pressure that will increase to the point where the supply increases and demand decreases and they are equal.