Market equilibrium is described as which of the following?
A) the point at which a nation reaches full employment
B) the time period used to determine the Consumer Price Index (CPI)
C) the point at which quantity supplied equals quantity demanded
D) the moment when profit is created

Question

Quizplus · Accepted Answer

Market equilibrium is the point at which the quantity of goods or services supplied equals the quantity demanded. At this point, there is no excess supply or excess demand, and the market price is stable. This is sometimes referred to as the market-clearing price. A and D are not relevant to the definition of market equilibrium, and B refers to a different economic concept.

Market Equilibrium Is Described as Which of the Following