At an equilibrium price, quantity demanded
A)exceeds quantity supplied.
B)equals quantity supplied.
C)is less than quantity supplied.
D)Any of the above is possible.

Question

Quizplus · Accepted Answer

At an equilibrium price, quantity demanded and quantity supplied are equal. This means that the market is in a state of balance, with buyers and sellers agreeing on a mutually acceptable price for the good or service being exchanged. If quantity demanded exceeded quantity supplied, there would be a shortage and prices would likely increase to bring the market back into equilibrium. Similarly, if quantity supplied exceeded quantity demanded, there would be a surplus and prices would likely decrease to achieve equilibrium.

At an Equilibrium Price, Quantity Demanded