The no-trade equilibrium in a perfectly competitive market occurs where:

Question

Quizplus · Accepted Answer

In a perfectly competitive market, the no-trade equilibrium occurs where the market quantity demanded is equal to the market quantity supplied. This is because at this point, the price is set at a level where buyers are willing to buy exactly the same amount that sellers are willing to sell, without either side having an incentive to deviate. Choices A, B, and D are incorrect, as they do not accurately describe the condition necessary for a no-trade equilibrium in a perfectly competitive market.

The No-Trade Equilibrium in a Perfectly Competitive Market Occurs Where