A market equilibrium is a point where:
Understand the Problem
The question is asking for the definition of market equilibrium, specifically what condition signifies it in economic terms.
Answer
The quantity supplied is equal to the quantity demand.
The final answer is that at market equilibrium, the quantity supplied is equal to the quantity demanded.
Answer for screen readers
The final answer is that at market equilibrium, the quantity supplied is equal to the quantity demanded.
More Information
Market equilibrium occurs where the supply and demand curves intersect, meaning the quantity demanded equals the quantity supplied.
Tips
A common mistake is confusing market equilibrium with other economic terms, such as surplus and shortage, where supply and demand are not equal.
Sources
- Market equilibrium (article) | Khan Academy - khanacademy.org
- Market Equilibrium: Supply & Demand | Definition & Examples - study.com
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