Answer to Question #15299 in Macroeconomics for Wish List

Question #15299
2. Market equilibrium occurs when: A) there is no incentive for prices to change in the market. B) quantity demanded equals quantity supplied. C) the market clears. D) there is no incentive for prices to change in the market, quantity demanded equals quantity supplied, and the market clears.
1
Expert's answer
2012-09-27T11:24:23-0400
The correct answer is D. The system is in equilibrium when there is no tendency
for it to change under existing conditions. Market equilibrium exists when
quantity supplied is equal to quantity demanded. When a market is in
equilibrium, there is no tendency for the market price to change. In other
words, the equilibrium price is stable under the existing market conditions.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be first!

Leave a comment

Ask Your question

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS
paypal