What is the definition of market equilibrium?

Question

Quizplus · Accepted Answer

Market equilibrium is the point where the quantity demanded of a good or service equals the quantity supplied, meaning there is no excess of supply or demand. This is also known as the market clearing price, where buyers and sellers are satisfied with the price and quantity being exchanged in the market. Therefore, the correct answer is C. Choice A is incorrect because unit elasticity of demand does not necessarily indicate market equilibrium. Choice B is incorrect because it only describes the extraction of consumer surplus, which may occur at prices above or below market equilibrium.

What Is the Definition of Market Equilibrium