QQuestionEconomics
QuestionEconomics
Which of the following best describes equilibrium in a market?
A. The price of a good makes the quantity buyers want to buy the same as the quantity sellers wish to provide.
B. The price is such that the quantity demanded is greater than the quantity supplied.
C. There are excess goods available in the market.
D. There are more people who want to buy a good than sellers willing to sell at the current price.
E. The price is such that the quantity supplied is greater than the quantity demanded.
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Answer
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Step 1**Step 1:**
Understand the concept of market equilibrium. Equilibrium in a market occurs when the quantity demanded of a product is equal to the quantity supplied. This is the point where there is no surplus or shortage of goods. **Step 2:** Analyze the given options. Option A describes the situation of market equilibrium correctly. Option B describes a situation of disequilibrium where the quantity demanded is greater than the quantity supplied, leading to a shortage of goods. Option C describes a situation of surplus, which is a disequilibrium state. Option D also describes a situation of disequilibrium where the quantity demanded exceeds the quantity supplied. Option E describes a situation of disequilibrium where the quantity supplied is greater than the quantity demanded, leading to a surplus of goods. **Step 3:** Choose the correct answer. Hence, the answer is option A: The price of a good makes the quantity buyers want to buy the same as the quantity sellers wish to provide. **
Final Answer
Equilibrium in a market is best described as the price of a good making the quantity buyers want to buy the same as the quantity sellers wish to provide.
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