In a competitive market, companies can dictate what the equilibrium price of a good or service is a false statement.
The sentence above is false, because competitive firm is a price taker, which means that it must accept the equilibrium price at which it sells goods.
Market equilibrium occurs when the quantity demanded is equal to the quantity supplied. In a curve, it represents the point of intersection between the demand curve and the supply curve.
At the point of equilibrium, the market determines prices and quantities for consumers and producers. Consumers and producers agree on price and quantity. At that point, consumers acquire the quantity of the good at the price they are willing and able to pay. And manufacturers offer quantity at a price they are willing and able to accept.
When the market reaches equilibrium, there is no tendency to change. If there is a disequilibrium, the market mechanism will move supply and demand towards a new equilibrium.
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