What will happen if the price prevailing in the market is
(i) Above the equilibrium price ?
(ii) Below the equilibrium price ?

Explanation

(i) When the market price is above the equilibrium price there will be excess supply i.e., the quantity demanded is less than quantity supplied.
(ii) When the market price is lower than the equilibrium price there will be excess demand i.e., the quantity demanded is more than the quantity supplied.