The equilibrium price and quantity of any good or service is established by:
A)only demanders.
B)only suppliers.
C)government regulations.
D)both demanders and suppliers.

Question

Quizplus · Accepted Answer

The equilibrium price and quantity of any good or service is established by both demanders and suppliers. Demanders determine how much of a product they are willing to purchase at any given price, while suppliers determine how much of a product they are willing to sell at any given price. The equilibrium price is where the quantity demanded equals the quantity supplied.

The Equilibrium Price and Quantity of Any Good or Service