An equilibrium in a market occurs:

Question

Quizplus · Accepted Answer

Equilibrium in a market occurs when the quantity supplied by producers equals the quantity demanded by consumers at a particular price level. This is the point where there is neither a surplus nor a shortage of goods, and the market is in a state of balance. Choices A and B are not correct as the equilibrium point can occur at any point on the demand curve, and it is not necessarily at the halfway point on the price axis or demand curve. Choice C is incorrect as suppliers may have unsold goods even when the market is in equilibrium, as they may choose to hold onto their inventory or hold out for higher prices in the future.

An Equilibrium in a Market Occurs