ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of these best describes market equilibrium?
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the price of Pepsi does not vary much from week to week
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Pepsi production provides a good profit for the manufacturer
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everyone who wants Pepsi can easily afford to buy it
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the amount of Pepsi for sale matches the amount that people want to buy
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Explanation:
Detailed explanation-1: -MARKETS: Equilibrium is achieved at the price at which quantities demanded and supplied are equal.
Detailed explanation-2: -Example #1 Company A sells Mangoes. During summer there is a great demand and equal supply. Hence the markets are at equilibrium. Post-summer season, the supply will start falling, demand might remain the same.
Detailed explanation-3: -Which of the following best refers to the market equilibrium price? Surpluses depress the number of goods supplied.
Detailed explanation-4: -The correct answer is option 2 i.e The balancing of the forces of demand and supply for the commodity. Market equilibrium is a market state where the supply in the market is equal to the demand in the market.
There is 1 question to complete.