Asked by Kelsey Brianne on May 11, 2024
Verified
The equilibrium of supply and demand in a market maximizes the total benefits to buyers and sellers of participating in that market.
Equilibrium
A state in a market where supply equals demand, and there is no external pressure for the situation to change, resulting in a stable market condition.
Supply and Demand
The basic economic principle describing the interplay between the availability of a good or service (supply) and the desire for that good or service (demand).
- Understand the significance of equilibrium in optimizing overall market advantages.
Verified Answer
KD
Kenisha DavisMay 16, 2024
Final Answer :
True
Explanation :
The equilibrium of supply and demand in a market maximizes the total benefits because it allocates resources in the most efficient way possible, where the quantity supplied equals the quantity demanded, leading to an optimal distribution of goods and services that maximizes consumer and producer surplus.
Learning Objectives
- Understand the significance of equilibrium in optimizing overall market advantages.