If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then:
A) the market is in equilibrium.
B) excess supply exists.
C) price will rise.
D) price will fall.

Question

Quizplus · Accepted Answer

If the current price of a good is the same as that found at the intersection of the market demand and supply curves, then the market is in equilibrium. This means that the quantity demanded by buyers is equal to the quantity supplied by sellers, and there is no excess supply or demand to push the price in either direction.

If the Current Price of a Good Is the Same