Under which of the following conditions,the equilibrium price is established?
A)Prevailing market price of an item is same as the price at which a consumer can buy the item
B)Demand curve and the supply curve are parallel to each other
C)Opportunity cost of a product is greater than its production cost
D)Production cost of an item is greater than its selling price

Question

Quizplus · Accepted Answer

The equilibrium price is established when the prevailing market price of an item is the same as the price at which a consumer can buy the item, meaning the quantity demanded equals the quantity supplied.

Under Which of the Following Conditions,the Equilibrium Price Is Established