Which of the following occurs when a market is in equilibrium?
A) Quantity supplied is equal to quantity demanded.
B) Supply is equal to demand.
C) The price of the good will tend to rise, all else held constant.
D) The price of the good will tend to fall, all else held constant.

Question

Quizplus · Accepted Answer

In equilibrium, the quantity supplied and the quantity demanded are equal. This means that market forces have reached a balance point where buyers and sellers are satisfied with the prevailing price and quantity traded. The price may not necessarily stay constant in the long run, but in the short run, it remains stable. Therefore, option A is the correct answer as it reflects the situation of market equilibrium. Option B is not incorrect but less precise, while options C and D imply a change in the market that would lead to a new equilibrium, rather than being in an equilibrium state.

Which of the Following Occurs When a Market Is in Equilibrium