The equilibrium of supply and demand in a market maximizes the total benefits received by buyers and sellers.

Question

Quizplus · Accepted Answer

The equilibrium is the point in the market where the quantity supplied is equal to the quantity demanded, resulting in the most efficient allocation of resources and maximizing the benefits received by both buyers and sellers. This is because at the equilibrium price, the goods or services are being sold to those who value them the most, while the resources are being allocated to their most efficient use. Therefore, the equilibrium of supply and demand maximizes the total benefits received by buyers and sellers.

The Equilibrium of Supply and Demand in a Market Maximizes