Asked by Rebekah Hilton on May 07, 2024
Verified
Market equilibrium occurs when:
A) there is no incentive for prices to change in the market.
B) quantity demanded equals quantity supplied.
C) the market clears.
D) there is no incentive for prices to change in the market,quantity demanded equals quantity supplied,and the market clears.
Market Equilibrium
A market scenario in which the equilibrium between demand and supply results in stable prices.
Incentive
Anything that offers rewards to people to change their behavior.
Quantity Demanded
The aggregate quantity of a product or service that buyers are prepared and capable of buying at a certain price.
- Gain insight into the principle of market balance and its influencing elements.
- Apprehend the correlation between price variations and the quantity of items demanded or supplied.
Verified Answer
TR
Trinity RobergeMay 12, 2024
Final Answer :
D
Explanation :
Market equilibrium occurs when there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears. In other words, supply and demand are in balance, and there is no excess supply (surplus) or excess demand (shortage) in the market. At this point, prices are stable and there is no pressure for prices to go up or down.
Learning Objectives
- Gain insight into the principle of market balance and its influencing elements.
- Apprehend the correlation between price variations and the quantity of items demanded or supplied.
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