When a market is in equilibrium and there is no outside intervention to change the equilibrium price:
A)total surplus is minimized.
B)inefficiency is maximized.
C)no mutually beneficial trades are missed.
D)some mutually beneficial trades may be missed.

Question

Quizplus · Accepted Answer

In equilibrium, the market is functioning efficiently and all mutually beneficial trades have already been made. Any further intervention may disrupt the allocation of resources and lead to inefficiencies or missed opportunities for mutually beneficial trades. Therefore, no outside intervention is necessary in a market that is already in equilibrium.

When a Market Is in Equilibrium and There Is No