28
QuizMultiple Choice

Introduction to Macroeconomics — Quiz

Question 28 • Personal Finance and Economics

In microeconomics, what occurs when equilibrium is reached?

Answer
A
Prices are set.
B
Prices fluctuate.
C
Prices increase.
D
Prices decline.

Explanation

Equilibrium occurs when the quantity buyers want to purchase equals the quantity sellers want to sell. At that point, there is no shortage or surplus putting pressure on prices to change, so the market price is established. Therefore, the best choice is “Prices are set.”

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