Equilibrium exists at the point where:
A) quantity supplied equals quantity demanded.
B) buyers and sellers "agree" on the quantity of a good they are willing to exchange at all prices.
C) willingness to pay is maximized.
D) every buyer and seller achieve their best possible outcome.

Question

Quizplus · Accepted Answer

Equilibrium occurs when the quantity supplied by producers of a good is equal to the quantity demanded by buyers of that same good. This is the point where the market clears, and all buyers who wish to buy the good at the prevailing price are able to do so, and all sellers who wish to sell the good at the prevailing price are able to do so. Therefore, the answer is A) quantity supplied equals quantity demanded.

Equilibrium Exists at the Point Where