Which of the following statements is TRUE about equilibrium in markets? I. Demand always equals supply at equilibrium. II. Quantity demanded always equals quantity supplied at equilibrium. III. In a market diagram, demand and supply cross each other at the equilibrium point.

Question

Quizplus · Accepted Answer

Statement I is not always true, as there can be instances where demand exceeds supply or vice versa at the equilibrium point. Statement II is true because when quantity demanded and quantity supplied are equal, the market is said to be in equilibrium. Statement III is also true as the equilibrium point is where the demand and supply curves intersect. Therefore, only statements II and III are true about equilibrium in markets.

Which of the Following Statements Is TRUE About Equilibrium in Markets