If a market is in equilibrium, then we know that price equals marginal benefit because
A)the market supply curve reflects marginal cost.
B)marginal benefit never changes.
C)the market demand curve reflects marginal benefit.
D)consumers are required by law to equate marginal benefit to price.
E)every consumer experiences the same benefits.

Question

Quizplus · Accepted Answer

In a market in equilibrium, the quantity demanded by consumers is exactly equal to the quantity supplied by producers. Therefore, the market price is determined by the point where the market demand curve intersects the market supply curve. At this price, the marginal benefit to consumers (reflected by the demand curve) is equal to the marginal cost to producers (reflected by the supply curve). So, price equals marginal cost and also equals marginal benefit (in this case, the market demand curve reflects marginal benefit).

If a Market Is in Equilibrium, Then We Know That