Convergence to Equilibrium
Equilibrium, and convergence to **equilibrium**. Start today at price above equilibrium (point E), this leads to Q_s > Q_d (or surplus), point (G), which drives tomorrow prices down -- everything else remaining equal -- on this market to point (H), then we have Q_s < Q_d (or shortage), which pushes prices ________ (up / down) for the following day ...
Such process, the reasoning goes, continues until reaching equilibrium. Of course, over a more dynamic environment we might be away from equilibrium in any given day. However, in a competitive market, market forces would be pushing prices towards equilibrium at all times.