When the price of gasoline is such that the quantity of gasoline demanded just equals the quantity of gasoline supplied,we say that the market is
A)in equilibrium
B)in distress
C)in disequilibrium
D)in need of change
E)in dire straits

Question

Quizplus · Accepted Answer

When the quantity demanded of a good or service equals the quantity supplied, we say that the market is in equilibrium. This indicates that the market is functioning efficiently without any excess supply or demand, and there is no upward or downward pressure on prices. Therefore, option A) is the correct choice. Options B), C) and E) are inappropriate because they imply some type of market inefficiency or distress, which is not the case when the market is in equilibrium. Option D) is irrelevant to the question.

When the Price of Gasoline Is Such That the Quantity