If the market for Twinkies is in equilibrium, then
A) Twinkies must be a normal good.
B) businesses would like to sell more at the current price.
C) consumers would like to buy more at the current price.
D) there is a surplus.
E) the quantity demanded equals the quantity supplied.

Question

Quizplus · Accepted Answer

If the market for Twinkies is in equilibrium, it means that the quantity demanded by consumers is exactly equal to the quantity supplied by businesses. There is no excess supply or demand, hence there is no surplus or shortage. The market is in a state of balance, and the price and quantity are stable. Therefore, the correct answer is E, the quantity demanded equals the quantity supplied.

If the Market for Twinkies Is in Equilibrium, Then