ECONOMICS
SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The price of the product will tend to rise.
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Quantity supplied exceeds quantity demanded
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Quantity demanded equals quantity supplied.
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Quantity demanded exceeds quantity supplied.
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Detailed explanation-1: -When market is in equilibrium there is a balance of quantity demanded and quantity supplied are the same. Hence, because quantity demanded = quantity supplied there are no shortages in the market and the price is fixed which clears the market.
Detailed explanation-2: -Answer and Explanation: The correct answer is: b. quantity demanded equals quantity supplied. Equilibrium in the market for a good or service is determined by the intersection of the demand and the supply curves.
Detailed explanation-3: -When market equilibrium occurs, quantity demanded is equal to quantity supplied, which means that both sellers and buyers get what they want.
Detailed explanation-4: -Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable.
Detailed explanation-5: -The equilibrium occurs where the quantity demanded is equal to the quantity supplied. If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied. Excess demand or a shortage will exist.