Which of the following statements correctly describes perfectly competitive market equilibrium?

Question

Quizplus · Accepted Answer

In perfect competition, the market price will settle at the point where the supply and demand curves intersect, which is the point where the quantity supplied equals the quantity demanded. This is the market equilibrium point, and it is achieved without any government intervention. In a perfectly competitive market, there is no excess supply or demand, so option C is incorrect. Multiple equilibria are possible in some markets, but not in a perfectly competitive market, so option D is also incorrect.

Which of the Following Statements Correctly Describes Perfectly Competitive Market