The market price equals the equilibrium price if quantity demanded equals quantity supplied at the market price.
Equilibrium occurs when quantity demanded and quantity supplied are equal.If at the market price,quantity demanded and quantity supplied are equal,the market price must be equal to the equilibrium price.

Question

Quizplus · Accepted Answer

This is a true statement based on the definition of equilibrium in supply and demand theory. In order for equilibrium to occur, the quantity demanded must be equal to the quantity supplied at a certain price point, also known as the equilibrium price. Therefore, if the market price equals the equilibrium price, it must be the case that quantity demanded and quantity supplied are equal at that price, resulting in an equilibrium.

The Market Price Equals the Equilibrium Price If Quantity Demanded