The equilibrium price is often considered to be "just right" because:
A) it equates the amount supplied with the amount demanded.
B) it does not result in a shortage.
C) it does not result in a surplus.
D) of all of the above.

Question

Quizplus · Accepted Answer

The equilibrium price is considered "just right" because it balances the forces of supply and demand, resulting in the quantity supplied and the quantity demanded being equal. At this price, there is neither a shortage nor a surplus of the good, achieving the most efficient allocation of resources. Therefore, choice D, which includes all the options provided, is the most appropriate answer.

The Equilibrium Price Is Often Considered to Be "Just Right