Which of the following statements is TRUE?
A)The concept of equilibrium requires that all individuals have an equal amount of income.
B)If a market is in equilibrium, the price in that market will not fluctuate by more than 5%.
C)If a market is in equilibrium, there will be no remaining opportunities for individuals to make themselves better off.
D)A market is in equilibrium when the number of buyers is equal to the number of sellers.

Question

Quizplus · Accepted Answer

In economics, the concept of equilibrium refers to a state where there are no remaining opportunities for individuals to make themselves better off through exchange. This means that all buyers and sellers have found mutually agreeable prices, quantities and allocations such that no one could be made better off by a different distribution of goods and services. The concept does not require that all individuals have an equal amount of income (A), that the price in the market will not fluctuate by more than a given percentage (B), or that the number of buyers is equal to the number of sellers (D).

Which of the Following Statements Is TRUE