Chapter 7, Problem 1MCQ

To determine

The correct option about the equilibrium.

Explanation of Solution

The equilibrium is the economic situation where all market is clear i.e., demand equals supply, 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 market 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.

Therefore, option “c” is correct.