The equilibrium price of a good occurs if the
A) quantity of the good demanded equals the quantity of the good supplied.
B) quantity of the good demanded is greater than the quantity of the good supplied.
C) quantity of the good demanded is less than the quantity of the good supplied.
D) demand for the good is equal to the supply of the good.
E) price of the good seems reasonable to most buyers.

Question

Quizplus · Accepted Answer

The equilibrium price is the price at which the quantity of a good demanded equals the quantity of the good supplied. At this price, there is no excess demand or excess supply of the good. The market forces of demand and supply work together to establish the equilibrium price.

The Equilibrium Price of a Good Occurs If the