Question

When is a market in equilibrium?

• A. Quantity demanded equals quantity supplied
• B. Excess demand and excess supply are zero
• C. The market clears at the equilibrium price
• D. All of the above

Answer 1

The correct option is D All of the above

Market equilibrium is a market state where the supply in the market is equal to the demand in the market. The equilibrium price is the price of a good or service when the supply of it is equal to the demand for it in the market. If a market is at equilibrium, the price will not change unless an external factor changes the supply or demand, which results in a disruption of the equilibrium.