Question

The concept of equilibrium implies both an equilibrium ____ and an equilibrium _____.

Question 6 options:

	Leftward shift, rightward shift
	Price, quantity
	Surplus, shortage
	Demand price, supply price

Answer 1

We know equilibrium is the point where quantity demanded and quantity supplied are equal or coincides. So under the equilibrium situation quantity will be equilibrium quantity. Since, th demand and supply are equal so the price at equilibrium will also be same. So there will be an equilibrium price.

So we know equilibrium is made up of equilibrium price and equilibrium quantity.

Hence,

The concept of equilibrium implies both an equilibrium price and an equilibrium quantity.

• So, Option B. Price, quantity is correct.