When quantity supplied equals quantity demanded, there is:
A) disequilibrium.
B) excess quantity supplied.
C) a market-clearing price (equilibrium price).
D) excess quantity demanded.

Question

Quizplus · Accepted Answer

When the quantity supplied is equal to the quantity demanded, it means that the market is in a state of balance or equilibrium. At this point, there is no shortage or surplus of goods, and the market is said to be "cleared" at a certain price level, known as the equilibrium price.

When Quantity Supplied Equals Quantity Demanded, There Is