A market is in equilibrium when
A)supply is equal to demand.
B)the price is adjusting upward.
C)the quantity supplied is equal to the quantity demanded.
D)tastes and preference remain constant.

Question

Quizplus · Accepted Answer

A market is in equilibrium when the quantity supplied is equal to the quantity demanded. This means that at the prevailing market price, suppliers are willing and able to supply the exact quantity that buyers are willing and able to purchase, resulting in no surpluses or shortages. Options A, B, and D are incorrect as they do not accurately define market equilibrium.

A Market Is in Equilibrium When