If the market for Twinkies is in equilibrium, then

Question

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In an equilibrium market, the quantity demanded equals the quantity supplied, which means that the market has already reached a balance point. Any shift in demand or supply will result in a corresponding shift in price or quantity, but while the market is in equilibrium, there is neither a surplus nor a shortage. Choice A is incorrect, as being a normal good or not does not affect the market being in equilibrium. Choice C is incorrect, as producers would not like to sell more at the current price since that would result in a shortage. Choice D is incorrect, as there cannot be a surplus in an equilibrium market. Choice E is also incorrect, as consumers would not like to buy more at the current price since that would result in a shortage.

If the Market for Twinkies Is in Equilibrium, Then