Suppose the market for coffee is in equilibrium at a price of $5 per pound. This means that:
A)any producer who sells coffee can earn a positive economic profit.
B)potential producers not producing coffee have reservation prices less than $5 per pound.
C)everyone can afford to buy coffee.
D)potential consumers not buying coffee value it at less than $5 per pound.

Question

Quizplus · Accepted Answer

In equilibrium, if the value a consumer places on a good or service is less than its equilibrium price, the consumer will not purchase it.

Suppose the Market for Coffee Is in Equilibrium at a Price