A competitive equilibrium is described by
A)a price only.
B)a quantity only.
C)the excess supply minus the excess demand.
D)a price and a quantity.

Question

Quizplus · Accepted Answer

A competitive equilibrium involves both a price and a quantity. It is the point at which the quantity demanded equals the quantity supplied, and the market-clearing price is established. Therefore, both factors are necessary to describe the equilibrium state.

A Competitive Equilibrium Is Described by