McqMate
Q. |
Equilibrium price means - |
A. | Price determined by demand and supply |
B. | Price determined by Cost and Profit |
C. | Price determined by Cost of production |
D. | Price determined to maximize profit |
Answer» A. Price determined by demand and supply | |
Explanation: Equilibrium price is a state in economy where the supply of goods matches demand. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and that the market is in a stale of equilibrium. In short, it is the market price at which the supply of an item equals the quantity demanded. |
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