If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:

Question

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:​

Quizplus · Accepted Answer

When the current price of a good is the same as that found at the intersection of the market demand and supply curves, it means that the quantity demanded and quantity supplied of the good are equal. This is the definition of market equilibrium, so the correct answer is (E) the market is in equilibrium.

If the Current Price of a Good Is the Same