Quantities demanded generally equal quantities supplied over time because:
A)generally we are lucky to have it work this way but it doesn't have to.
B)most of the time we have an abundance of natural resources.
C)prices adjust until this is so.
D)the government directs production.

Question

Quizplus · Accepted Answer

The process of prices adjusting until quantities demanded equal quantities supplied is the basic mechanism of a market economy. As prices rise, demand tends to fall, and as prices fall, supply tends to fall. This process continues until the equilibrium price is reached, at which point the quantities demanded and supplied are equal. This is known as the Law of Supply and Demand. While some government interventions can impact the market, in a free market system, the prices will adjust to ensure equilibrium.

Quantities Demanded Generally Equal Quantities Supplied Over Time Because