Question

question 38 (2 points)
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market equilibrium occurs when
all markets become equal.
the quantity demanded equals the quantity supplied.
opposing forces pull demand and supply apart.
demand and supply move in opposite direction.
demand and supply change so that they are equal at all possible prices.

Explanation:

Market equilibrium is a fundamental concept in economics. It occurs when the quantity of a good or service that consumers are willing and able to buy (quantity demanded) is exactly the same as the quantity that producers are willing and able to sell (quantity supplied). At this point, there is no tendency for the price to change in the absence of external shocks.

• The first option “all markets become equal” is too vague and not a standard definition of market equilibrium.
• The third option “opposing forces pull demand and supply apart” is incorrect as equilibrium is about a balance, not forces pulling them apart.
• The fourth option “demand and supply move in opposite direction” is a general characteristic of their relationship (demand - price inverse, supply - price direct) but not the definition of equilibrium.
• The fifth option “demand and supply change so that they are equal at all possible prices” is not practical as demand and supply curves are typically not such that they are equal at every price.

Answer:

the quantity demanded equals the quantity supplied.