Question

What does it mean to reach an equilibrium price?

A.when the amounts of good supplied equals the amount of demand
B.when the amounts of good supplied is more the amount of demand
C.when the amounts of good supplied is less the amount of demand

Answer 1

when the amount of goods supplied is equal to the amount of demand we can attain the equilibrium price.

Step-by-step explanation:

• when the number of goods supplied is equal to the demand then there will be a proper cycle flow of goods according to the demand so the price will meet an equilibrium stage.

• when the number of goods supplied is more than the demand the material will be losing its equilibrium price which in turn affects the supplier and so there is a chance to stop production.

• when the number of goods supplied less to the amount of demand there exists the demand which hampers the price to stay equilibrium, in turn, it will also encourage hoarding.