A market is in equilibrium when
A) the quantity demanded equals the quantity supplied at the market clearing price.
B) the horizontal axis crosses the vertical axis.
C) buyers do not desire for the price to be any lower.
D) the equilibrium price is below the market price.

Question

Quizplus · Accepted Answer

A market is in equilibrium when the quantity demanded by buyers is equal to the quantity supplied by sellers, resulting in no excess supply or demand. This equilibrium is achieved at the market-clearing price, where the quantity supplied and quantity demanded intersect on the graph. Hence, A is the correct choice, and the other options are incorrect.

A Market Is in Equilibrium When