Question

What is achieved when supply meets demand?

market price

quantity price

relative price

equilibrium price

Answer 1

When supply meets demand in a market, the result is the equilibrium price. The equilibrium price, also known as the market-clearing price, is the price at which the quantity of goods supplied is equal to the quantity of goods demanded. At this point, there is neither a surplus nor a shortage in the market, and resources are allocated efficiently.