When does market equilibrium for an asset exist?
A) when there is no tendency for the price of the asset to move higher or lower
B) when the bid price equals the ask price
C) when the asset can be resold at a profit
D) when the asset can be bought at a discount

Question

Quizplus · Accepted Answer

Market equilibrium for an asset exists when there is no tendency for the price of the asset to move higher or lower, indicating a balance between supply and demand.

When Does Market Equilibrium for an Asset Exist