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Fofino [41]
3 years ago
6

How is an equilibrium price determined?

Social Studies
1 answer:
bulgar [2K]3 years ago
6 0

Answer:.

D. By finding the price where quantity supplied matches quantity

demanded

Explanation:

Equilibrium price refers to a price point in which the Force of demand and supply in the market are balanced.  (assuming that there are not other external forces that influenced the trades). Typically, neither the producer or the consumer have advantage over one another when transacting within that price point.

To find out a an equilibrium price, we need to find out the price point where quantity supplied matches quantity  demanded. This point will provide us with the knowledge about the price which considered as "fair" for both parties and they felt that they obtained equal amount of value from the transactions.

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