Asked by Paulina Martinez on May 06, 2024
Verified
The market equilibrium is found at the:
A) price where quantity demanded exceeds quantity supplied.
B) price where quantity demanded equals quantity supplied.
C) price where quantity supplied exceeds quantity demanded.
D) highest price possible in the market.
Equilibrium Price
The rate at which the supply of products aligns perfectly with the demand for these goods.
Quantity Demanded
The amount of a good or service consumers are willing and able to purchase at a given price level, during a specified period.
Quantity Supplied
The volume of goods or services that manufacturers are ready and able to supply at a specific price point within a set duration.
- Understand the concept of market equilibrium and its determinants.
Verified Answer
AC
Anna Catherine BatesMay 10, 2024
Final Answer :
B
Explanation :
Market equilibrium occurs at the price where quantity demanded equals quantity supplied. At this point, the market is in a state of balance and there is no excess demand or supply.
Learning Objectives
- Understand the concept of market equilibrium and its determinants.