In the long run,the market price tends to adjust toward the equilibrium point.
Level of Learning 1: Knowledge of key terms

Question

Quizplus · Accepted Answer

This statement is true. In equilibrium, the quantity demanded matches the quantity supplied at a particular price level, and this is the price at which goods will be sold in the market. As supply and demand factors change, the market price will adjust either upwards or downwards to reach a new equilibrium point.

In the Long Run,the Market Price Tends to Adjust Toward