1 .If , at the prevailing price, more of a go e price must fall. e price is below equilibrium e price is at equilibrium. e price system cannot allocate the good efficiently. 2.It is at this point that the agreeable s a me , and their respective quantity deman apply gap. quilibrium. emand gap. itersection point. 3.In equilibrium analysis, this simply mean quantities, given the same price pace. ap. Did. equality