Market equilibrium

Define market equilibrium.

• Where quantity demanded is less than quantity supplied

• Where quantity demanded is greater than quantity supplied

• Where quantity demanded is equal to quantity supplied

Which statement below would be the most correct to describe the equilibrium price?

• $600

• $600 per month

• $500 per month

• $700

If the current price is $800, which of the following would be the best description for the situation that exists in the market

• There is a shortage of 12 houses

• There is a shortage of 12000 houses

• There is a surplus of 12

• There is a surplus of 12000 houses

If the current price is $300, which of the following would be the best description for the situation that exists in the market?

• There is a shortage of 18 houses

• There is a shortage of 18000 houses

• There is a surplus of 18

• There is a surplus of 18000 houses

A state of equality or balance between market demand and supply is called__________

•The concept of market equilibrium is based on a market which is operating efficiently and where there are no external factors that affect the supply and demand of the product or service. Do you think it is possible?

• yes

• no