General equilibrium is a situation in which all markets are in _____and all economic agents have made decisions____.
A)equilibrium; in their own best interests
B)shortage; in their own best interests
C)surplus; based on only partial information
D)equilibrium; based on only partial information

Question

General equilibrium is a situation in which all markets are in  _____and all economic agents have made decisions____.
A)equilibrium; in their own best interests
B)shortage; in their own best interests
C)surplus; based on only partial information
D)equilibrium; based on only partial information

Quizplus · Accepted Answer

General equilibrium is a state where all markets are in equilibrium, meaning that the quantity supplied equals the quantity demanded at the prevailing market price. In this situation, buyers and sellers are acting in their own best interests, and there are no shortages or surpluses in any market. Therefore, option A is the correct answer.

General Equilibrium Is a Situation in Which All Markets Are