When a market is in equilibrium:
A)a person could do better if he or she did something different.
B)people have exploited all opportunities to make themselves better off.
C)government has directed the market in such a way as to achieve this point.
D)markets are not working efficiently.

Question

Quizplus · Accepted Answer

When a market is in equilibrium, it means that the forces of supply and demand have been balanced and the price has settled at a level where neither buyers nor sellers have any incentive to take action because they believe they are already getting fair value for their money. In this situation, people have fully exploited all available opportunities and neither buyers nor sellers could do better by making a different decision. Therefore, option B is the best choice. Option A is incorrect because people cannot do better by making a different decision since the market is already in equilibrium. Option C is incorrect because the government's role in achieving equilibrium is limited to providing a stable and predictable economic environment, but it does not direct the market to achieve equilibrium. Option D is incorrect because a market in equilibrium implies that it is working efficiently, as it has reached the point where supply equals demand and the allocation of resources is optimal.

When a Market Is in Equilibrium