Market equilibrium occurs at that price for which
A) quantity supplied equals quantity demanded
B) cost equals the wages to labor
C) the surplus quantity drives increased demand
D) quantity supplied exceeds quantity demanded
E) quantity supplied is less than quantity demanded

Question

Quizplus · Accepted Answer

Market equilibrium occurs when the quantity supplied by sellers is equal to the quantity demanded by buyers. This is the point where the market clears and there is no excess supply or demand. Therefore, choice A is the correct answer. Choices B, C, D, and E are incorrect as they do not represent the concept of market equilibrium.

Market Equilibrium Occurs at That Price for Which