Asked by Sofia Beltran on Sep 24, 2024
Verified
Which of the following statements is true
A) a market equilibrium price is where quantity demanded equals quantity supplied
B) a market equilibrium price is where the demand is higher than the supply
C) a market equilibrium price is where the supply is higher than the demand
D) none of the above
Market Equilibrium Price
The market equilibrium price is the price at which the quantity of goods suppliers offer equals the quantity of goods consumers are willing to buy.
Quantity Demanded
The entire quantity of a product or service that buyers are prepared and can afford to buy at a specific price.
- Acquire insight into the dynamics of market equilibrium and how shifts in supply and demand influence the equilibrium price.
Verified Answer
BH
Baqer Hamid2 days ago
Final Answer :
A
Explanation :
A market equilibrium occurs when the quantity demanded by consumers is equal to the quantity supplied by producers. This is represented by the point where the supply and demand curves intersect. At this point, there is no shortage or surplus of goods, and the market is in balance. Option B and C are incorrect because they both suggest an imbalance in the market, with either excess demand or excess supply. Option D is incorrect as well because A is true.
Learning Objectives
- Acquire insight into the dynamics of market equilibrium and how shifts in supply and demand influence the equilibrium price.