Which statement is TRUE?
A)The concept of equilibrium requires that all individuals have an equal amount of income.
B)If a market is in equilibrium,the price in that market will not fluctuate by more than 5%.
C)If a market is in equilibrium,there will be no remaining opportunities for individuals to make themselves better off.
D)A market is in equilibrium when the number of buyers is equal to the number of sellers.

Question

Quizplus · Accepted Answer

If a market is in equilibrium, it means that the demand is equal to the supply and there are no remaining opportunities for individuals to make themselves better off by either buying or selling. Having all individuals with an equal amount of income (A) is not necessary for equilibrium, as there can still be differences in supply and demand. The price fluctuation limit (B) is not a defining characteristic of equilibrium, as prices can still fluctuate within the equilibrium price range. The number of buyers and sellers (D) can be equal but still not be in equilibrium if supply and demand are not balanced.

Which Statement Is TRUE