when a market is in equilibrium ?
Correct answer: D. All of the above
- A. quantity demanded equals quantity supplied
- B. Excess demand and excess supply are zero
- C. The market is cleared by the equilibrium price
- D. All of the above
Explanation
At equilibrium, the quantity buyers want equals the quantity sellers offer, so neither excess demand nor excess supply remains. The equilibrium price therefore clears the market, making all statements correct.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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