Asked by Lopez Anibal on Jul 24, 2024

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The equilibrium point represents the only price-quantity combination in a market that:

A) causes both buyers and sellers to agree to a price increase.
B) causes both buyers and sellers to agree to a price decrease.
C) exactly matches the independent plans of buyers and sellers.
D) allows buyers to purchase what they want.
E) allows sellers to earn a positive profit.

Price-Quantity Combination

A specific point on a supply or demand curve at which a certain quantity of goods is supplied or demanded at a particular price.

Independent Plans

are strategies or courses of action devised and executed autonomously by an individual, organization, or country without external control or influence.

  • Become familiar with the idea of market equilibrium and how changes in supply and demand affect the equilibrium price and quantity.
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Verified Answer

LD
Lyanne DaisyJul 29, 2024
Final Answer :
C
Explanation :
The equilibrium point is where the quantity demanded by buyers equals the quantity supplied by sellers, which means that the market has reached a point where there is no excess supply or demand. This point is the only price-quantity combination at which buyers and sellers will agree because it exactly matches the independent plans of both buyers and sellers. Therefore, option C is the correct choice. Options A, B, D, and E are incorrect because they do not accurately describe the concept of equilibrium in a market.