Managerial Economicsbasic
The situation in which the quantity of a good demanded by consumers equals the quantity supplied by producers is known as market _____.
Answer
equilibrium
Explanation
### Why this is right
Market equilibrium is the condition where the quantity buyers demand equals the quantity sellers supply.
### The concept
At equilibrium, there is neither excess demand nor excess supply at the market price. Prices away from equilibrium create one of these imbalances and tend to put pressure on price to adjust.
### Remember
Equilibrium means quantities demanded and supplied are equal.
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