The equilibrium price in the market represents the:

Question

Quizplus · Accepted Answer

The equilibrium price is determined by the intersection of the supply and demand curves in the market. At this price, the quantity demanded by buyers is equal to the quantity supplied by sellers. This means that the good is being allocated efficiently among all potential buyers and uses, with each unit going to its next highest valued use. Therefore, the equilibrium price represents the value of the good in its next highest valued use.

The Equilibrium Price in the Market Represents The