Question

Equilibrium price implies that everyone who would like to purchase a product is able to.

a True

b False

Answer 1

Answer : (a) True

Equilibrium price indicates that the quantity of goods demanded is equal to the quantity of goods supplied and this is the point where the demand and supply curves intersect each other. This is the point at which there is stability in the market and the demand of consumers is completely fulfilled. It essentially indicates that everyone who would like to purchase a product is able to do so.

At any other point in the market, demand and supply curves don't intersect and there will be mismatch in the demand and supply needs of market.