An equilibrium price:

Question

Quizplus · Accepted Answer

An equilibrium price is the price at which the quantity of a good or service demanded by consumers is equal to the quantity of that good or service supplied by producers. At this price, consumers are willing to purchase exactly the amount that producers are willing to supply, resulting in a market balance. Choice A is incorrect because consumers may always want lower prices, but at the equilibrium price they are willing to accept it as the best available option. Choice B is also incorrect because producers may always want higher prices, but at the equilibrium price they are willing to accept it as the best available option. Choice D is incorrect because while consumers and producers may have different goals, they interact in a market to reach the equilibrium price.

An Equilibrium Price