Question

Which of the following statements is TRUE? If a market is in equilibrium, there will be...

Which of the following statements is TRUE?

If a market is in equilibrium, there will be no remaining opportunities for individuals to make themselves better off.
A market is in equilibrium when the number of buyers is equal to the number of sellers.
The concept of equilibrium requires that all individuals have an equal amount of income.
If a market is in equilibrium, the price in that market will not fluctuate by more than 5%.
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Answer #1

Ans is A

At equilibrium market demand =market supply and there is no pareto improvement over the equilibrium.Pareto improvement is the point where someone can be made better off without worsening other.

At equilibrium,total number of quantitities that buyer wants are equal to quantities which a suppliers wants to sell at a given price

It doesnot means all individuals will have same income and market price can fluctuate by more than 5% if demand or supply changes

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