The equilibrium price and quantity of a good,once attained,will
A) change only if either supply or demand changes
B) change only if both supply and demand change
C) change only if supply changes
D) change only if demand changes
E) never change

Question

Quizplus · Accepted Answer

Once the equilibrium price and quantity are attained, they will only change if either the supply or demand changes. This is because the equilibrium price and quantity represent the point where the quantity supplied equals the quantity demanded. Therefore, any change in either supply or demand will affect the equilibrium and result in a new price and quantity. However, if neither supply nor demand changes, then the equilibrium will remain the same, and the price and quantity will not change.

The Equilibrium Price and Quantity of a Good,once Attained,will