The equilibrium principle states that
A) a market out of equilibrium leaves no unexploited opportunities for individuals.
B) a market out of equilibrium provides the maximum economic surplus.
C) a market in equilibrium leaves no unexploited opportunities for individuals.
D) a market in equilibrium always leaves unexploited opportunities for individuals.
E) no markets are ever in equilibrium.

Question

Quizplus · Accepted Answer

The equilibrium principle states that a market in equilibrium leaves no unexploited opportunities for individuals. This means that all potential gains from trade have been realized, and there is no way for individuals to further increase their welfare without causing someone else to lose. Therefore, any deviation from the equilibrium would result in a loss of potential gains from trade.

The Equilibrium Principle States That