Question

Select all that apply. Select the items that describe an economy at equilibrium.

A) Producers earn enough money to cover costs.
B) Producers supply enough goods for consumers.
C) Resources are not used efficiently.
D) Supply equals demand.

Answer 1

The correct answers are:

B) Producers supply enough goods for consumers;

D) Supply equals demand;

In the economics, the equilibrium state basically means that the supply in the market is well balanced with the demand on the market, thus leading to an ideal economic state within the economy. The equilibrium will essentially mean that the supply is equal to the demand, thus there will be maximum efficiency. Also, since the producers are managing to supply just the right amount of goods to the consumers, everyone will benefit, with the consumers always have what they want, and the producers always have all of their products sold.