If equilibrium exists:
A)all individuals must have an equal amount of income.
B)the price in that market will not fluctuate by more than 5%.
C)there will be no remaining opportunities for individuals to make themselves better off.
D)the number of buyers will equal the number of sellers.

Question

Quizplus · Accepted Answer

In economic terms, equilibrium refers to a state where supply equals demand, and there are no external forces causing the market to move away from this point. At equilibrium, all participants in the market have maximized their benefits, meaning there are no further opportunities for individuals to make themselves better off without making someone else worse off. This does not necessarily imply equal income distribution (A), a specific price fluctuation limit (B), or an equal number of buyers and sellers (D).

If Equilibrium Exists