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Market Equilibrium and Bonds

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What is meant by the term "market equilibrium", and why is this important within the study of supply and demand for the Bond Market?

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This post explains "market equilibrium" and how it linked with the study of supply and demand for the Bond Market.

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Market equilibrium represents a situation when supply and demand of a particular product or service is equal, that means there is neither surplus nor shortage of the product or service in the market. In case of a demand and supply curve, market equilibrium occurs at a point where demand and supply curves intersect each other. Market equilibrium also refers to that price of a product which tends to remain stable due to sufficient supply to meet the market ...

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