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Explain why the price in competitive markets settles down at the equilibrium intersection of
supply and demand. Explain what happens if the market price starts out too high or too low.

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This is the concept of invincible hand. The demand and supply would settle down at a point a one-time automated text message with a link to
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where, both of them meet at equilibrium.

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Consider the supply and demand curves for corn:

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As mentioned as per the concept of invincible hand, there is no tendency for demand or supply to
move up or down at equilibrium point E.

If the market price begins at a higher price, say at $5, then that of the quantity demanded. There
would be surplus and goes sold out. So, the price gets adjusted to a point where demand meets
supply and there would be no surplus. This would bring it to Equilibrium.

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Similarly, If the market price begins at a lower price, say at $2, then that of the quantity
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demanded. There would beSolutions
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supply. So, the price gets 

adjusted to a point where demand meets supply and there would be no shortage. This would
bring it to Equilibrium.
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