Which of the following best describes a market in equilibrium?

Choose 1 answer:
(A) At the current price, quantity supplied is greater than quantity demanded.
(B) At the current quantity, buyers are willing to pay more than sellers receive.
(c) At the current price, quantity supplied equals quantity demanded.
(D) At the current price, quantity supplied is less than quantity demanded.
(E) At the current quantity, the price sellers charge is more than what buyers are willing to pay.

Question

Which of the following best describes a market in equilibrium?

Choose 1 answer:
(A) At the current price, quantity supplied is greater than quantity demanded.
(B) At the current quantity, buyers are willing to pay more than sellers receive.
(c) At the current price, quantity supplied equals quantity demanded.
(D) At the current price, quantity supplied is less than quantity demanded.
(E) At the current quantity, the price sellers charge is more than what buyers are willing to pay.

Accepted Answer

∻Solution∻ ‖ a ⋮ Market Equilibrium: Market equilibrium occurs when the quantity supplied equals the quantity demanded at a particular price. ‖ ‖ b ⋮ Equilibrium Condition: At equilibrium, there is no excess supply or excess demand, meaning the market clears. Mathematically, this can be expressed as $Q_s = Q_d$, where $Q_s$ is the quantity supplied and $Q_d$ is the quantity demanded. ‖ ‖ c ⋮ Answer Analysis: - Option A: Incorrect, as it describes a surplus. - Option B: Incorrect, as it implies a discrepancy between what buyers are willing to pay and what sellers receive. - Option C: Correct, as it accurately describes the condition of market equilibrium. - Option D: Incorrect, as it describes a shortage. - Option E: Incorrect, as it implies a price above the equilibrium price. ‖ ∻Answer∻ ⚹ C. At the current price, quantity supplied equals quantity demanded. ⚹ ∻Key Concept∻ ⚹ Market Equilibrium ⚹ ∻Explanation∻ ⚹ Market equilibrium is the state where the quantity supplied equals the quantity demanded at a specific price, ensuring no excess supply or demand. ⚹◊What factors can cause a market to move away from equilibrium⍭ Generate me a similar question◊

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