At the current market price, when does market equilibrium occur?

Multiple choice question for Supply and Demand. Select an option, then review the explanation below.

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The amount buyers want equals the amount sellers offerThe quantity buyers desire is lower than what sellers provideThe quantity sellers provide exceeds what buyers wantThe quantity buyers want surpasses what sellers supply

Explanation

Market equilibrium is achieved when the quantity demanded by consumers matches exactly the quantity supplied by producers at the given price. If demand is less than supply, or supply exceeds demand, the market is not in equilibrium.

Practice related questions from the same subject.

1.What is the typical shape of a demand curve?
2.What term describes a company earning profits beyond its normal profit level?
3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
5.What are firms generally assumed to do with their costs and profits?

At the current market price, when does market equilibrium occur?

Explanation

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