There is neither excess supply nor excess demand when

Question

Quizplus · Accepted Answer

Excess supply (surplus) occurs when the quantity supplied exceeds the quantity demanded at the given price, causing sellers to lower their prices in order to sell off their excess supply. Excess demand (shortage) occurs when the quantity demanded exceeds the quantity supplied at the given price, causing buyers to bid up the price in order to obtain the limited supply. At equilibrium price, the quantity demanded equals the quantity supplied, and there is neither excess supply nor excess demand. Therefore, option A is the best choice.

There Is Neither Excess Supply nor Excess Demand When