Question

In economics, equilibrium is a situation in which __________.

• A. there is no inherent tendency to change
• B. quantity demanded equals quantity supplied
• C. the market clears and becomes stable
• D. all of the above

Answer 1

Answer: (D)

all of the above

Equilibrium state is a state at which the quantity supplied is equal to the quantity demanded. Hence, neither buyers nor sellers want to change their behaviour. They are exact same. Hence, in economics, equilibrium is a situation in which there is no inherent tendency to change. Also, the market clears and becomes stable.