Equilibrium is defined when

A)supply is limited and demand decreases.
B)supply and demand meet.
C)demand is higher than supply.
D)supply is higher than demand.

Question

Equilibrium is defined when

A)supply is limited and demand decreases.
B)supply and demand meet.
C)demand is higher than supply.
D)supply is higher than demand.

anonymous · Answer

@inowalst

dmndlife24 · Answer

Equilibrium is defined when supply and demand meet.  The equilibrium point on a graph is where the supply curve intersects the demand curve, usually where you should set the price of a certain good or service.  If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded.  Therefore, there is a surplus of the good on the market.