At the equilibrium price, business inventories are
A) unstable.
B) stable.
C) zero.
D) growing.
E) shrinking.

Question

Quizplus · Accepted Answer

At the equilibrium price, the quantity demanded equals the quantity supplied, indicating that there is no excess supply or excess demand in the market. This means that businesses are able to sell their entire inventory at the current market price, leading to stability in inventory levels.

At the Equilibrium Price, Business Inventories Are