A market for a product reaches equilibrium when

Question

Quizplus · Accepted Answer

Equilibrium occurs when the quantity demanded by buyers matches the quantity supplied by sellers at a specific price. This means that buyers intend to buy exactly the same quantity that sellers intend to sell, resulting in a balance between supply and demand. Option A is incorrect because it only refers to the actual quantity bought and sold, but not whether it is in equilibrium or not. Options B and D are incorrect because they suggest that the price continues to rise or fall even after there is a surplus or shortage, which is not consistent with the concept of equilibrium.

A Market for a Product Reaches Equilibrium When