What is the likely effect of the equilibrium of supply and demand in a market
A)It maximizes the prices at which producers are willing to sell.
B)It minimizes the prices that consumers are willing to pay.
C)It maximizes market benefits from government intervention.
D)It maximizes total surplus in a competitive market.

Question

Quizplus · Accepted Answer

The equilibrium of supply and demand in a market will maximize total surplus in a competitive market. This is because at the equilibrium point, the quantity of goods or services supplied by producers will equal the quantity demanded by consumers, resulting in an efficient allocation of resources and maximizing the net benefits to society. At this point, both producers and consumers are satisfied, and no one can be made better off without making someone else worse off.

What Is the Likely Effect of the Equilibrium of Supply