When a competitive equilibrium is achieved in a market,

Question

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A competitive equilibrium occurs when the market finds a price that equates the quantity demanded by consumers with the quantity supplied by producers. At this point, the total net benefit to society is maximized because the market is operating efficiently, and all goods are being consumed by those who value them the most. This means that there is no deadweight loss, and all gains from trade are being realized. While individuals may have different levels of benefit from the equilibrium, they cannot be made collectively better off by overriding the market price with price ceilings or floors.

When a Competitive Equilibrium Is Achieved in a Market