On a supply-and-demand diagram,quantity demanded equals quantity supplied
A) only at the single equilibrium price.
B) at every price at or above the equilibrium price.
C) at every price at or below the equilibrium price.
D) at every price.

Question

Quizplus · Accepted Answer

At the single equilibrium price, quantity demanded and quantity supplied are equal, which means that there is no excess demand or supply, and the market is in a state of equilibrium. At any other price, there will either be excess demand or excess supply, which will create a pressure for the price to adjust to the equilibrium level. Therefore, only at the equilibrium price will the quantity demanded equal the quantity supplied.

On a Supply-And-Demand Diagram,quantity Demanded Equals Quantity Supplied