A market is in equilibrium:

Question

Quizplus · Accepted Answer

Equilibrium occurs when the quantity demanded equals the quantity supplied. This means that the amount producers want to sell is equal to the amount consumers want to buy. A surplus (A) occurs when producers supply more than consumers are willing to buy, leading to a buildup of unsold goods. All prices above the equilibrium price (B) would result in a surplus because suppliers are willing to produce more than demand requires. A downsloping demand curve and upsloping supply curve (D) are necessary conditions for equilibrium, but not sufficient.

A Market Is in Equilibrium