Question

The equilibrium is the state when _________.

• A. demand equals supply
• B. demand is more than supply
• C. demand is less than supply
• D. supply is less than demand

Answer 1

The correct option is A demand equals supply

Market equilibrium is a situation where the aggregate demand and supply of a commodity are the same I.e., equal. Equilibrium is achieved at the intersection of aggregate demand aggregate supply and at that level we get the equilibrium price and quantity.