The equilibrium price is the profit-maximizing point at which the quantity demanded equals the quantity supplied.

Question

Quizplus · Accepted Answer

The statement is correct. At equilibrium, the price is such that the quantity demanded by buyers is exactly equal to the quantity supplied by producers, and there is no excess supply or demand. This is the point where producers can sell their products at the highest possible price (given the level of demand), and buyers can purchase the goods at the lowest possible price (given the level of supply). Any price below or above the equilibrium would not be optimal for either side and would result in inefficiencies in the market.

The Equilibrium Price Is the Profit-Maximizing Point at Which the Quantity