Final answer:
The correct option is 2). In the long run, the market price of a good tends to equal the equilibrium price due to the increased elasticity of supply and demand, which allows quantities to adjust to changes, balancing out the price at an equilibrium level.
Step-by-step explanation:
When prices are free to adjust over time, in the long run, the market price of a good tends to equal the equilibrium price. This is because in most markets for goods and services, while prices may fluctuate frequently in the short run, in the long run, supply and demand become more elastic. As a result, price movements become more subdued and the quantity of goods adjusts more readily to changes. At an equilibrium price, the quantity demanded by consumers and the quantity supplied by producers reaches a balance.
Furthermore, the concept of equilibrium suggests that if prices were to persistently rise above or fall below the equilibrium price, market forces would guide them back to this balance point. For example, if a price was above equilibrium, there would be a surplus as supply exceeds demand, and prices would tend to fall to encourage more consumption and less production. Conversely, if a price was persistently below equilibrium, a shortage would occur, leading prices to rise as demand exceeds supply.