When a market is in equilibrium,
A) quantity demanded equals quantity supplied
B) quantity demanded exceeds quantity supplied
C) the demand curve is identical to the supply curve
D) the economy must be at a point along the production possibilities frontier
E) the law of demand is equivalent to the law of supply

Question

Quizplus · Accepted Answer

When a market is in equilibrium, the quantity of goods or services demanded by consumers equals the quantity that suppliers are willing to offer, meaning that the market has reached a state of balance. In this situation, there is no shortage or surplus, and the price remains stable.

When a Market Is in Equilibrium