Once an equilibrium is achieved,it can persist indefinitely because
A) shocks that shift the demand curve or the supply curve cannot occur.
B) shocks to the demand curve are always exactly offset by shocks to the supply curve.
C) the government never intervenes in markets at equilibrium.
D) in the absence of supply/demand shocks no one applies pressure to change the price.

Question

Quizplus · Accepted Answer

Once an equilibrium is achieved, it means that the market forces of supply and demand have reached a balance where the price and quantity are stable. In the absence of any external shocks to the demand or supply curves, there is no pressure for the price to change, and so the equilibrium can persist indefinitely. Therefore, option D is the best choice. However, the other options are not entirely accurate as there can be demand and supply shocks, government intervention, and shifts in the demand and supply curves. The key is that in the absence of such shocks, the equilibrium can persist.

Once an Equilibrium Is Achieved,it Can Persist Indefinitely Because