Microeconomics: Market Equilibrium · Class 11 · CBSE · Commerce Economics
In a competitive market, market equilibrium is reached when:
Practice question from Microeconomics: Market Equilibrium (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-126DD7
In a competitive market, market equilibrium is reached when:
- A.The quantity demanded is greater than the quantity supplied
- B.The quantity supplied is greater than the quantity demanded
- C.The quantity demanded equals the quantity suppliedCorrect answer
- D.The government fixes the market price
Solution
Market equilibrium occurs at the price where quantity demanded equals quantity supplied. At this price, there is neither excess demand nor excess supply.
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