Question

If equilibrium exists:

A. all consumers must have the highest happiness level.
B. there will be no remaining opportunities for individuals to make themselves better off.
C. the price in that market will not fluctuate by more than 5 %.
D. the number of buyers will equal the number of sellers.

Answer 1

The correct answer is (B)

Step-by-step explanation:

Market equilibrium is a situation where demand equals the supply, which helps to determine the equilibrium quantity and price. Market equilibrium is a point which continuously shifts due to change in quantity demanded and supply. Overall at the equilibrium point, everyone is better off, and there will be no remaining opportunities for the individuals to make themselves better off.