A market equilibrium is a point where:
Understand the Problem
The question is asking about the definition of market equilibrium in economics and what it entails regarding supply and demand.
Answer
The demand is equal to the quantity supplied.
The final answer is the demand is equal to the quantity supplied.
Answer for screen readers
The final answer is the demand is equal to the quantity supplied.
More Information
Market equilibrium occurs when the quantity demanded by consumers matches the quantity supplied by producers, resulting in a stable market price.
Tips
Avoid thinking that market equilibrium occurs when the quantity supplied exceeds demand or demand exceeds supply, as that results in surplus or shortage.
Sources
- Market equilibrium (article) | Khan Academy - khanacademy.org
- Market equilibrium is defined as the point where | Chegg.com - chegg.com
- Market Equilibrium: Supply & Demand | Definition & Examples - study.com
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