Which of the following is the correct way to describe equilibrium in a market?
A)At equilibrium, demand equals supply.
B)At equilibrium, quantity demanded equals quantity supplied.
C)At equilibrium, market forces no longer apply.
D)At equilibrium, scarcity is eliminated.

Question

Quizplus · Accepted Answer

Equilibrium in a market occurs when the quantity demanded by consumers is equal to the quantity supplied by producers. This is represented graphically by the intersection of the demand and supply curves. Therefore, choice B is the correct way to describe equilibrium in a market. Choice A is partially correct but does not encompass the whole concept of equilibrium since equilibrium is not just about demand equaling supply but also about the specific quantities being equal. Choice C is not true since market forces continue to exist even at equilibrium. Choice D is incorrect since scarcity is a fundamental economic concept that cannot be completely eliminated.

Which of the Following Is the Correct Way to Describe