In a free market setting where quantity supplied is 50 units and quantity demanded is 50 units, price will:
A) rise.
B) fall.
C) remain the same.
D) move in an indeterminate direction.

Question

Quizplus · Accepted Answer

In a free market, the price is determined by the intersection of the demand and supply curves. When the quantity supplied equals the quantity demanded, it means that the market is at equilibrium, and the price that prevails in the market is the equilibrium price. Therefore, in this scenario, the price will remain the same.

In a Free Market Setting Where Quantity Supplied Is 50