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Effects of an Autonomous Change on Equilibrium Demand in the Product Market

Equilibrium p...

Question

Equilibrium price is the price when ________.

A

supply is greater than demand

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B

supply is less than demand

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C

demand is very high

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D

supply is equal to demand

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Solution

The correct option is D supply is equal to demand
Equilibrium price is when the demand is equal to supply.
In the diagram the point where demand and supply intersect is the equilibrium.

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