When the price of a good equals the equilibrium price:
A) there will still be some wasted resources.
B) gains from trade are minimized.
C) opportunity cost is minimized.
D) there are no unexploited gains from trade.

Question

Quizplus · Accepted Answer

When the price of a good equals the equilibrium price, there are no unexploited gains from trade. This means that all possible gains from trade have been realized and there is no benefit to be gained from increasing or decreasing the price. Therefore, the equilibrium price is considered the most efficient price for allocating resources and satisfying consumer demand.

When the Price of a Good Equals the Equilibrium Price