Which of following is NOT true of an equilibrium price?
A)Consumers who are willing to pay the equilibrium price can acquire the good.
B)It measures the value of the last unit sold to consumers.
C)It is always a fair and just price.
D)Firms who are willing to accept the equilibrium price can sell what they produce.

Question

Quizplus · Accepted Answer

Equilibrium price is based on the intersection of demand and supply curves, and it represents the price at which the quantity demanded and supplied are equal. It is not always a fair and just price, as it is solely determined by market forces of supply and demand and may not account for externalities or ethical considerations.

Which of Following Is NOT True of an Equilibrium Price