The impact of the price mechanism on supply and demand is a particularly notable feature of the market economies. In the market the equilibrium is determined by the price mechanism and it also encompasses of the interplay amongst the forces of demand and supply in the determination of the prices at which in the market the commodities are sold and bought. The situation at which the quantity demanded and the quantity supplied of a specific commodity is equal at a specific level of price is known as market equilibrium (Huang, 1989). Hence, with no excess demand or supply the market can be clear that there is no viable propensity for any alterations in quantity or price. The market equilibrium diagrammatically is at that point where the supply and demand curves intersect one another; this is the same point where the quantity supplied is exactly equal to the quantity which is demanded. The upward sloping supply curve which has a positive relation with the quantity supplied and price intersect with the downward sloping demand curve which has a negative relation with the quantity demanded and the price.