21
QuizMultiple Choice

Microeconomics — Test

Question 21 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Equilibrium is defined when

Answer
A
supply is limited and demand decreases.
B
supply is higher than demand.
C
supply and demand meet.
D
demand is higher than supply.

Explanation

Equilibrium occurs at the point where the quantity supplied equals the quantity demanded. On a supply-and-demand graph, this is where the supply and demand curves meet. Therefore, the correct choice is A, “supply and demand meet.”

AI-written and checked against the verified answer.

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