Which of following is NOT true of an equilibrium price?
A) Consumers who are willing to pay the equilibrium price can acquire the good.
B) It measures the value of the last unit sold to consumers.
C) It is always a fair price.
D) Firms who are willing to accept the equilibrium price can sell what they produce.
E) It measures the cost of resources required to produce the last unit.

Question

Quizplus · Accepted Answer

Equilibrium price is determined by the forces of demand and supply in the market. It is not necessarily a fair price, but rather the price at which the quantity demanded equals the quantity supplied. The other options are true.

Which of Following Is NOT True of an Equilibrium Price