Question

What happens at equilibrium price and quanity? 1.The quantity supplied equals the quantity demanded.

2.The price demanded equals the price supplied.
3.The priced demanded equals the quantity supplied.
4.The quantity supplied equals the price demanded.
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Answer 1

Explanation:

At equilibrium price and quantity, the answer is 1. The quantity supplied equals the quantity demanded.

This means that the market is in a state of balance, where the quantity of a good or service that producers are willing to supply is exactly the same as the quantity that consumers are willing to buy. As a result, there is no excess supply or excess demand, and the price of the good or service is stable.