Equilibrium takes place where:
A) supply and demand intersect.
B) supply is highest.
C) demand is highest.
D) prices are maximized.

Question

Quizplus · Accepted Answer

Equilibrium occurs where supply and demand intersect, meaning that the quantity of goods or services supplied matches the quantity demanded at a certain price level. At this point, there is no shortage or surplus in the market, and the price is stable. Therefore, the correct choice is A.

Equilibrium Takes Place Where