Question 6
[Maximum number: 1]
Which statement defines market equilibrium?
A
when ceteris paribus no longer applies
B
when quantity demanded equals quantity supplied
C
when quantity demanded is equal to price
D
when supply can no longer expand
CAIE A-Level Economics 2.4.1 Market equilibrium
Practise recognising equilibrium, shortages and surpluses from demand and supply data, diagrams and price adjustment scenarios.
How this is tested
- distinguish equilibrium from disequilibrium using quantity demanded and supplied
- use tables or equations to identify shortages, surpluses and price movement
- interpret demand and supply diagrams showing excess demand or excess supply