Economists use the term equilibrium to describe situation when:
A)individuals are equal.
B)goods are distributed equitably .
C)there are equal number of buyers and sellers..
D)no individual would be better off taking a different action or no individual has an incentive to change his or her behavior.

Question

Quizplus · Accepted Answer

Economists define equilibrium as the state at which no individual would be better off taking a different action or no individual has an incentive to change his or her behavior. This means that all market forces are balanced, and the market has reached stability. In other words, supply equals demand, and there is no surplus or shortage of goods or services.

Economists Use the Term Equilibrium to Describe Situation When