Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The quantity demanded equals the quantity supplied
B
The price is the highest
C
The government regulates prices
D
Consumers have excess supply
Understanding the Answer
Let's break down why this is correct
Answer
At the market equilibrium point, the amount of a product that consumers want to buy matches exactly with the amount that producers want to sell. This means there is a balance between supply and demand, so there are no shortages or surpluses of that product. For example, if a store has 100 apples and customers want to buy exactly 100 apples, the market is in equilibrium. At this point, the price of the apples is stable because both buyers and sellers are satisfied. If the price were to change, either too many apples would be left unsold, or there wouldn't be enough apples for everyone who wants to buy them.
Detailed Explanation
At market equilibrium, the amount people want to buy matches the amount sellers want to sell. Other options are incorrect because Some might think the highest price means the best sales; It's a common belief that the government controls prices at equilibrium.
Key Concepts
market equilibrium
Topic
Supply and Demand Analysis
Difficulty
easy level question
Cognitive Level
understand
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