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If the scenario is reversed and the rental rate is above the equilibrium point then the number of apartments supplied exceeds the number demanded which causes a surplus in the market. The surplus will exert a downward pressure on rental rates which will increase the quantity demanded and reduce the quantity supplied (Online Texts...
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Once again, this adjustment process will move quantities supplied and demanded back and forth to counter balance rising and falling rates. Sooner or later, both rates and quantities will reach a balance, this is the equilibrium point, but equilibrium can only be achieved temporarily or within an economic model, because multiple factors affect the market and these factors are constantly changing (Colander, 2004)...
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