Which of the following is the correct way to describe equilibrium in a market?
A)At equilibrium, demand equals supply.
B)At equilibrium, quantity demanded equals quantity supplied.
C)At equilibrium, market forces are no longer at work.
D)Equilibrium is a tendency, a state of perpetual motion.
E)Equilibrium is the best combination of price and quantity.

Question

Quizplus · Accepted Answer

Equilibrium in a market occurs when the quantity demanded by consumers is equal to the quantity supplied by producers. This means that there is no excess demand or supply, and the market is in balance. Therefore, B is the correct way to describe equilibrium in a market. A is also a correct statement, but B is more accurate as it includes the concept of quantity. C, D, and E are not accurate descriptions of market equilibrium.

Which of the Following Is the Correct Way to Describe