Chapter 2R, Problem 7MCQ

To determine

The question requires us to identify the true statement about the equilibrium price in the market.

Explanation of Solution

The equilibrium is the economic situation where all market is clear, and any deviation from the equilibrium point will lead to a worse-off situation for the producers and consumers. Generally, the market achieves the equilibrium level at the intersection point of the market demand curve and the supply curve.

At the equilibrium price, the quantity demanded equals the quantity supplied means there is no shortage or surplus of the product at this point.

Thus, at the equilibrium price in a market the quantity demanded equals the quantity supplied of the goods.

Option “e” is correct.