The equilibrium price and quantity are determined by the:

Question

Quizplus · Accepted Answer

The equilibrium price and quantity are determined by the market mechanism, which refers to the interaction of supply and demand in a competitive market setting. This process allows the market to find the most efficient allocation of resources, resulting in an equilibrium price and quantity. While the government may play a role in regulating markets, the market mechanism ultimately determines the equilibrium outcomes. The other options (magical hand and invisible mind) are not valid explanations for determining equilibrium price and quantity.

The Equilibrium Price and Quantity Are Determined by The