Question
What is achieved when supply meets demand?
market price
quantity price
relative price
equilibrium price
which is right?
market price
quantity price
relative price
equilibrium price
which is right?
Answers
GPT-4 Turbo
When supply meets demand, this condition is known as equilibrium in the context of economics. The correct term from your options is:
**equilibrium price**
At the equilibrium price, the quantity of goods supplied is equal to the quantity of goods demanded. This balance ensures that there is neither an excess supply (surplus) nor an excess demand (shortage). Prices tend to gravitate towards the equilibrium over time in a competitive market.
**equilibrium price**
At the equilibrium price, the quantity of goods supplied is equal to the quantity of goods demanded. This balance ensures that there is neither an excess supply (surplus) nor an excess demand (shortage). Prices tend to gravitate towards the equilibrium over time in a competitive market.