At the equilibrium of supply and demand in a market:
A)costs of producers are minimised
B)total benefits received by buyers and sellers are maximised
C)total benefits received by buyers and sellers are minimised
D)expenditures of buyers are maximised

Question

Quizplus · Accepted Answer

At the equilibrium of supply and demand, the market price is such that both buyers and sellers are willing to trade at that price. This means that total benefits received by both buyers and sellers are maximized, since they are willing to pay/accept that price for the good/service being exchanged. Therefore, option B is the correct choice.

At the Equilibrium of Supply and Demand in a Market