Market equilibrium

Understand the Problem

The question is asking about market equilibrium, which refers to the state where supply and demand in a market are balanced, resulting in stable prices. It's a fundamental concept in economics.

Answer

Market equilibrium is when quantity demanded equals quantity supplied, stabilizing prices.

Market equilibrium occurs when the quantity demanded equals the quantity supplied at a certain price level, resulting in a stable market condition.

Answer for screen readers

Market equilibrium occurs when the quantity demanded equals the quantity supplied at a certain price level, resulting in a stable market condition.

More Information

In a market equilibrium state, there is neither a surplus nor a shortage of goods. Equilibrium acts as a natural stabilizer, balancing supply and demand.

Tips

Confusing equilibrium with mere balance in supply or demand; it specifically means price and quantity that match both supply and demand.

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