Which of the following is true of equilibrium?
A) Equilibrium refers to a situation where the government allocates resources among economic agents.
B) Equilibrium refers to a situation where all economic agents simultaneously optimize after considering one another's actions.
C) Equilibrium refers to a situation where all economic agents are making suboptimal choices and have an incentive to change their behavior.
D) Equilibrium refers to a situation where an economic agent can be made better off without making anyone else worse off.

Question

Quizplus · Accepted Answer

Equilibrium refers to a situation where all economic agents simultaneously optimize after considering one another's actions. In this state, no one can make themselves better off by changing their behavior, given what other agents are doing. This is often seen as an ideal situation in economics because it suggests that the market is efficient and there is no deadlock or inefficiency.

Which of the Following Is True of Equilibrium