At the equilibrium price of good X,
A)a shortage of good X exists.
B)a surplus of good X exists.
C)neither a shortage nor a surplus of good X exists.
D)the government must be controlling the price of good X.

Question

Quizplus · Accepted Answer

At the equilibrium price, the quantity demanded of good X equals the quantity supplied, and hence there is neither a shortage nor a surplus of good X. Therefore, choice C is the correct answer.

At the Equilibrium Price of Good X