When a market is in equilibrium, consumers who are not willing to pay the market-clearing price will spend their money elsewhere.

Question

Quizplus · Accepted Answer

When a market is in equilibrium, the market-clearing price is the one that balances the supply and demand. Consumers who are not willing to pay this price will choose to spend their money somewhere else, leading to a stable equilibrium in the market.

When a Market Is in Equilibrium, Consumers Who Are Not