Equilibrium in the market occurs when

Question

BlackTom AI · Accepted Answer

First, let's identify the core concept: market equilibrium occurs where the quantity demanded equals the quantity supplied, meaning the market clears with no inherent pressure for price to change, assuming other factors are held constant.
Option 1: 'The quantity demanded exceeds the quantity supplied.' This situation describes excess demand or a shortage, not equilibrium. When demand exceeds supply, prices typically rise to curb demand and inspire more supply until equilibrium is restored.
Option 2: 'The quantity supplied exceeds the quantity demanded.' This depicts excess supply or a surplus, not equilibrium. In a surplus, prices tend to fall, encouraging more demand and/or less production until the market returns to balance.
Option 3: 'Quantity demanded equals quantity supplied.' This matches the hallmark of equilibrium, where the market clears and there is no inherent pressure for price movement, assuming other conditions are unchanged.
Option 4: 'There is no demand for the product.' A complete lack of demand would prevent an established equilibrium in a typical competitive market; it would imply zero traded quantity and does not describe a functioning equilibrium state.

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Equilibrium in the market occurs when

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FFB001 Practice 1 in-class test- Requires Respondus LockDown Browser

Equilibrium in the market occurs when

查看解析

登录即可查看完整答案

类似问题

What is the equilibrium quantity before the tax?

In the absence of externalities, the perfectly competitive market maximizes economic surplus when

Find the equilibrium price and quantity in this market. Price = [Fill in the blank] Quantity = [Fill in the blank]

Table 4-6 ​ Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 15 10 60 12 20 45 9 30 30 6 40 15 3 50 0 ​ ​ Refer to Table 4-6. The equilibrium price and quantity, respectively, are

Price $ Qd Qs 1 90 20 2 70 30 3 50 50 4 45 80 5 43 120 3. Using the table above, the equilibrium quantity is

Price $ Qd Qs 1 90 20 2 70 30 3 50 50 4 45 80 5 43 120 2. Using the table above, the equilibrium price is

更多留学生实用工具

希望你的学习变得更简单

Table 4-6 Price (Dollars per unit) Quantity Demanded (Units) Quantity Supplied (Units) 15 10 60 12 20 45 9 30 30 6 40 15 3 50 0 Refer to Table 4-6. The equilibrium price and quantity, respectively, are