Question
What happens in case of market equilibrium: (a) Market demand = market supply (b) There is no excess supply in the market
The correct answer is
Both (a) and (b)
Market equilibrium occurs when market demand equals market supply, ensuring that there is no excess supply or shortage in the market. Both conditions (a) and (b) are true.
Was this answer helpful?
Important Questions from Microeconomics
Surge pricing takes place when a service provider
What effect will a decrease in demand and an increase in supply have on equilibrium price?
A situation where the expenditure of the government exceeds its revenue is called ______.
Which of the following statements is NOT correct about the factors that gave rise to the Consumer Movement in India?
The total value of goods and services traded is considered to be the _________ of trade.
Need Expert Advice?
