21
QuizMultiple Choice

Investing and Financial Markets — Unit test

Question 21 • Personal Finance - EL3403

In microeconomics, what occurs when equilibrium is reached?

Answer
A
Prices decline.
B
Prices increase.
C
Prices are set.
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 pressure for the price to rise or fall, so the market price is set at its equilibrium level. The correct choice is “Prices are set.”

AI-written and checked against the verified answer.

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