An equilibrium price splits the uses of the good into ________ part(s).
A) one and only one
B) two
C) three
D) four or more

Question

Quizplus · Accepted Answer

An equilibrium price splits the uses of the good into two parts - consumer use and producer use. When the price is equal to the equilibrium price, the demand and supply of the good are equal, and both consumers and producers are able to use the good in the way they intend to. Thus, the equilibrium price represents a balance between the two uses of the good.

An Equilibrium Price Splits the Uses of the Good into ________