Final answer:
Market equilibrium is achieved when the quantity supplied equals the quantity demanded and is represented by the intersection of the supply and demand curves. This point reflects the market clearing price, where there are no shortages or surpluses.
The correct option is D.
Step-by-step explanation:
For a market to be in equilibrium, the quantity supplied (Qs) must equal the quantity demanded (Qd), which is represented by option D. This occurs when the supply curve (S) intersects with the demand curve (D), as shown in economic graphs.
At this point, known as the market clearing price, the plans of consumers and producers align, meaning the amount consumers are willing to buy is exactly the amount producers are willing to sell. A free market naturally gravitates toward this point because at any price above the equilibrium, there would be a surplus,
causing producers to lower prices, and at any price below, there would be a shortage, leading consumers to offer higher prices, moving towards the equilibrium.
The correct option is D.