In the city of Westminster,market analysts have observed that all Christmas trees offered for sale will be purchased at a price of $20 and all demand will be satisfied.In this market,$20 is the ________.
A) equilibrium price
B) demand price
C) supply price
D) margin price

Question

Quizplus · Accepted Answer

The given scenario describes a situation of perfect competition where all demand is being satisfied at a certain price. This price is the equilibrium price, which means the price at which the quantity demanded by consumers equals the quantity supplied by producers. Therefore, the correct option is (A) equilibrium price. The other options do not fit the given scenario.

In the City of Westminster,market Analysts Have Observed That All