The equilibrium quantity in a perfectly competitive market is determined at the point of ________.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium quantity is determined at the point where the demand and supply curves intersect each other. At this point, the quantity demanded by consumers is equal to the quantity supplied by producers. This means that there is no excess demand or supply in the market, and the price and quantity are in balance. The point of intersection is also known as the market-clearing price or the equilibrium price. Therefore, choice A, which states that the equilibrium quantity is determined at the point of intersection of the demand and supply curves, is the correct choice.

The Equilibrium Quantity in a Perfectly Competitive Market Is Determined