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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