Equilibrium is unique;it is the only price-output combination that is mutually compatible with aggregate supply and demand.

Question

Quizplus · Accepted Answer

This statement is true. In a market, the equilibrium price and quantity occur where the demand and supply curves intersect. At this point, the quantity demanded by consumers is equal to the quantity supplied by producers, and there is no excess demand or supply. This is the only price-output combination that is mutually compatible with aggregate supply and demand, as any other combination would result in either a shortage or a surplus.

Equilibrium Is Unique;it Is the Only Price-Output Combination That Is