Which of the following statements about equilibrium is true?

Question

Quizplus · Accepted Answer

In equilibrium, the market clears and there are neither surpluses nor shortages. Option A is incorrect because positive attributes refer to facts about the market, while normative attributes refer to value judgments. Option B is incorrect because the equilibrium price does, in fact, allocate goods efficiently based on individual valuations. Option C is incorrect as equilibrium is not synonymous with happiness or fairness but rather a state of balance between supply and demand in the market.

Which of the Following Statements About Equilibrium Is True