Which of the following best characterizes the equilibrium point in a market?

Question

Quizplus · Accepted Answer

An equilibrium point in a market is the point where the quantity demanded by buyers equals the quantity supplied by sellers, and it exactly matches the independent plans of both the buyers and sellers. At this point, there is no excess demand or excess supply, and the market clears. Buyers and sellers may not necessarily agree on the price at the equilibrium point, but the market-clearing price is determined by the forces of supply and demand. Therefore, options A, B, and D are not correct.

Which of the Following Best Characterizes the Equilibrium Point in a Market