2
lesson pretestMultiple Choice

Pretest

Question 2 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY

In microeconomics, what occurs when equilibrium is reached?

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

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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