Market equilibrium occurs when:
A)there is no incentive for prices to change in the market.
B)quantity demanded equals quantity supplied.
C)the market clears.
D)there is no incentive for prices to change in the market,quantity demanded equals quantity supplied,and the market clears.

Question

Quizplus · Accepted Answer

Market equilibrium occurs when there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears. In other words, supply and demand are in balance, and there is no excess supply (surplus) or excess demand (shortage) in the market. At this point, prices are stable and there is no pressure for prices to go up or down.

Market Equilibrium Occurs When