What does high prices signal suppliers to do? Equilibrium is reached when what occurs?

High prices signal suppliers to increase production and supply more of a good or service to the market. This is because higher prices typically indicate higher potential profits, which incentivizes suppliers to produce and supply more in order to take advantage of the increased profitability.<br /><br />Equilibrium is reached when the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers. In other words, equilibrium occurs when the market is in a state of balance, where the amount of the good or service that consumers want to buy is exactly equal to the amount that producers are willing and able to sell. At this point, the market price stabilizes, and there is no excess supply or demand.