What is an example of how the equilibrium price of a good or service can be determined?

The equilibrium price of a good or service is determined at the point where the quantity demanded by consumers equals the quantity supplied by producers. For example, if a new smartphone is released, the manufacturer sets an initial price. If demand exceeds supply, prices may rise until they reach a level where the quantity demanded matches the quantity available, establishing the equilibrium price. Conversely, if supply exceeds demand, prices may fall until equilibrium is restored.