Equilibrium in the market is attained when
A) the laws of supply and demand interact to set the price and quantity of a product at which buyers and sellers agree.
B) there are no dramatic changes in the market over time.
C) suppliers are willing to produce the quantity demanded.
D) no single firm has more than 50 percent of the market.
E) consumers are willing to pay the price being charged.

Question

Quizplus · Accepted Answer

Equilibrium in the market is defined as a situation where the quantity demanded equals the quantity supplied, which occurs at a specific price. The price is determined by the interaction of the laws of supply and demand, meaning that buyers and sellers agree on a price at which they are both willing to trade. This price and quantity combination is the point at which the market is in balance, and there is no excess supply or demand, leading to stable prices and exchange of goods. Therefore, option A is the correct choice. Options B, C, D, and E may be relevant but do not define the concept of market equilibrium.

Equilibrium in the Market Is Attained When