Market equilibrium is determined by
A)the producers in the market.
B)the largest consumers in the market.
C)all producers and consumers together.
D)the consumers in the market.
E)the largest firms in the market.

Question

Quizplus · Accepted Answer

Market equilibrium is determined by the interaction of all producers and consumers in the market. This is because market equilibrium occurs where the supply of a good or service equals the demand for that good or service. Thus, both producers and consumers play a role in determining the price and quantity at which this equilibrium occurs.

Market Equilibrium Is Determined by